Severity scoring at first notice of loss.
Most carriers don't know the severity of an incoming claim until an adjuster reviews it — often hours after the FNOL arrives. Fnolwise scores claim severity at intake, directing high-severity and CAT-exposure claims to the appropriate adjuster tier before the queue backs up.
What Fnolwise reads to score severity
Severity scoring at FNOL operates with limited information — the claim is just arriving. Fnolwise uses the signals available at first notice, combined with coverage data pulled at intake, to produce a defensible decision-support output.
Reported damage type
The claimant's description of what was damaged — building structure, contents, vehicle, or multi-vehicle — establishes the base severity band. Commercial property total loss indicators (roof collapse, fire, flood affecting multiple floors) are pattern-matched at intake.
Commercial vs. personal line
Commercial property and commercial auto claims carry different severity distributions than personal lines. Fnolwise applies line-specific scoring parameters — a commercial property claim involving a multi-tenant building warrants different severity weighting than a personal dwelling loss of similar dollar description.
Policy limits and coverage type
ISO PolicyServices provides the policy-in-force limits at intake. Fnolwise uses the applicable coverage limit — building, business personal property, liability, or collision — to bound the severity estimate relative to the maximum exposure. A claim reported as "total loss" against a high-limit commercial policy scores differently than the same description on a low-limit personal policy.
Geographic and CAT exposure
Incident location is cross-referenced against active CAT event zones. During a hurricane, hailstorm, or wildfire event, all claims originating in the affected geography receive an automatic CAT flag regardless of the claimant's description. This supports surge-capacity routing before adjuster capacity is consumed.
Prior claim history
ISO ClaimSearch returns the claimant's prior claim record at intake. Multiple prior claims in the same coverage period or same loss location contribute to severity scoring — particularly relevant for commercial property claims where repeat losses may indicate unresolved structural issues or maintenance deferred loss development.
Bodily injury indication
Any claimant description referencing injury to persons — medical treatment sought, emergency services called, injury acknowledged — moves the claim into the bodily injury (BI) category. BI claims receive elevated severity scores relative to property damage (PD) claims of equivalent dollar description, consistent with the different adjuster skill and reserve requirements for BI handling.
What the severity score produces
Fnolwise outputs a severity band and routing decision — not a specific dollar estimate. The output is a decision-support signal for claims operations, not a reserve setting tool.
| Severity Band | Indicators | Typical Routing | Reserve Implication |
|---|---|---|---|
| Low | Minor property damage, no BI indication, low-limit policy, no CAT zone, no prior claim flag | Standard adjuster queue | Reserve within standard band for line and coverage type |
| Medium | Moderate structural damage OR BI indication OR multiple prior claims, policy limits mid-range | Experienced adjuster queue or supervisor review | Reserve adequacy review recommended at 30-day evaluation |
| High | Total loss indicators, serious BI, commercial building structure, high-limit policy, attorney indication | Senior adjuster or specialty unit assignment | Early reserve adequacy review; litigation management referral if attorney noted |
| CAT | Geographic CAT zone match, disaster declaration proximity, mass event claim pattern | CAT team routing with surge-capacity protocol | Provisional reserve pending field inspection; CAT management protocol activated |
Severity band thresholds are configurable per carrier during pilot setup. A commercial carrier writing high-value property risks may calibrate the High band differently than a personal lines carrier. Fnolwise provides default thresholds derived from carrier intake operations, which your claims operations team adjusts to match your specific book of business.
Why severity scoring at FNOL matters for reserve accuracy
The reserve set at first notice — even a preliminary reserve — influences the claims cycle from that point forward. Carriers that systematically under-reserve at intake face corrective reserve development later in the claim lifecycle, which affects financial reporting accuracy and adjuster workload when reserves need revision.
Severity scoring at FNOL doesn't replace the adjuster's reserve judgment. What it does is ensure that the adjuster receiving the claim arrives with context — not a blank intake form and a verbal description. When the severity band is already set and the routing decision is made, the adjuster's first action is evaluation and coverage confirmation, not discovery.
For carriers monitoring reserve adequacy ratios across their book of business, early severity signals also provide an earlier view into the incoming loss development pattern — particularly useful when a storm event produces a concentrated spike in commercial property claims that the carrier's historical reserve patterns weren't calibrated for.