Straight-through processing rate (STP rate) is the percentage of claims that are received, processed, and paid without any human intervention.

STP rate is the clearest measure of claims automation maturity. Leading insurers now achieve 40-60% STP on simple, high-volume claim types like auto glass, travel delay, and pet wellness. The theoretical ceiling is higher, but real-world factors—fraud detection triggers, documentation gaps, coverage ambiguity—mean some human review will always be necessary.

Calculating STP requires precision about what counts as "no human intervention." Does a supervisor approval count as human touch? What about a customer service inquiry that doesn't change the claim outcome? Most insurers define STP as claims that flow from FNOL to payment without entering an adjuster's queue. Be consistent in your definition over time.

The business case for STP is compelling: claims processed straight-through cost 50-90% less than manually adjusted claims and resolve in hours instead of days. But STP done poorly—paying claims without adequate fraud detection or coverage verification—can be catastrophic. The goal is confident automation, not reckless automation.

Related terms: FNOL response time, Claims triage, Underwriting automation