Property claims glossary
What is claims cycle time?
Cycle time is the elapsed time from first notice of loss to resolution, usually measured to first payment or to closing. It is the measure families feel most directly, and long cycle times bring complaints, public adjusters and regulatory attention.
Worked example · fictitious claim
A claim is reported on June 2 and paid on July 2, a cycle time of 30 days. If a carrier closing 1,000 claims a quarter cuts average cycle time from 30 days to 20, each family is paid 10 days sooner. At an average of $15,000 per claim, that is $15,000 × 1,000 = $15,000,000 reaching families 10 days earlier each quarter.
How it affects a settlement
Cycle time does not change what the policy owes, but it decides when families are paid and whether state deadlines are met. Much of a long cycle time is waiting: for documents, for a reinspection, for someone to find the answer in the file.
In practice
The elapsed time from FNOL to resolution. Long cycle times are a common source of complaints, and complaints escalate: to regulators, to public adjusters, to counsel. Time spent locating information inside documents is the most compressible part of cycle time.
Related
First notice of loss (FNOL) · Prompt-pay laws · Reduce claims cycle time · property claims glossary