Property and casualty insurers send the 272 transaction to report information about a loss event to claimants, agents, adjusters, and other authorized recipients. The notification originates from the insurer and flows to external parties who need claim details. The 272 uses the LID (Loss Information Description) segment to establish the claim framework, the BCI (Basic Claim Information) segment to convey key claim data such as loss date and claim status, and the NM1 (Individual or Organizational Name) segments to identify all parties involved—including the claimant, injured parties, witnesses, and service providers. Supporting segments like DTP (Date or Time or Period) anchor critical dates, while PWK (Paperwork) identifies attachments and documentation.

Suppose Midwest Casualty receives a homeowner’s claim from a water damage loss and must notify the policyholder, their mortgage lender, and the property restoration contractor. Midwest Casualty generates a 272 that includes the loss location via the LIE (Individual or Event Location) and N4 (Geographic Location) segments, attaches the claim number and loss date through N9 and DTP references, and lists the mortgage company and restoration firm in separate NM1 loops with their contact information in PER segments. The message may include repair cost estimates in the AMT (Monetary Amount) segment and links to inspection reports or photos via PWK segments. Each recipient receives the notification with only the details relevant to their role in the claim process.