It’s hard to say conclusively, given that I can only see a snippet of what you had in your original Claims lookup table:
However, from what I can see, a lot of that looks like it belongs in a fact table, not a dimension /lookup table. I find this a very helpful way to think of the decision as to what belongs where in the data model:
Dimension tables represent “things” (e.g., customers, locations, products, etc.), the aspects of which remain fairly stable over time
Fact tables represent “actions” (e.g., claims being processed, sales being made, persons being hired), the aspects of which change constantly
Most of what I can see in your original Claims table to me represents “actions” and is thus more suited to a fact table. However, if you can provide the full list of fields in that Claims table, it will help me better understand whether there’s a subset that would be suitable for crafting a dimension table - perhaps a Policies dimension table, and a Claims Processed fact table?
It’s also valuable to think of what dimensions you want to slice your fact table on, and what reports you want to create, in order to ensure that your data model supports your end goals.
So, that’s probably a less conclusive answer then you were hoping for, but hopefully helpful nonetheless. With a bit more information, we can craft a more specific data model.