Claims Volume Decline in 2025 But Emerging Risks Intensify, According to Verisk
Insurance claims declined in 2025 across most lines of business, but risks have become more complex and concentrated, according to the Annual Insurance Claims Trends Report from Verisk, a leading strategic data analytics and technology partner to the global insurance industry.
In the personal lines market, homeowners claim volume reached the lowest level in the past five years due to a relatively quiet hurricane season. Additionally, in 2025 alone, homeowners claims declined to 5.3 million, a 19% decline from 6.5 million claims in 2024.
Personal auto claims volume declined nearly 3% in 2025, following a 5% decrease in 2024. Additionally, while personal auto theft claims volume declined by 25% in 2025 and 24% in 2024, theft risk has become more concentrated.
According to the report, Select Infiniti models ranked among the highest for theft-to-collision ratios in 2025, along with select Kia, Hyundai and Acura models, reflecting increasingly targeted theft activity.
Also, Catalytic converter theft closely tracked precious metal prices, with theft volumes rising after metal prices peaked in 2021. Rising platinum, palladium and rhodium prices in 2025 could signal renewed pressure on theft ahead.
In the commercial lines market, property claims declined to 710,000 in 2025, down from 910,000 in 2023, while commercial auto claims fell 5% in 2025 but remained 14% higher than in 2021. This could reflect a longer-term expansion of the commercial driving risk, the report said.
“Claims data is often the earliest signal of how risk is changing,” said Shane Riedman, president, anti-fraud analytics at Verisk. “Even as overall volumes declined in 2025, the underlying loss patterns tell a very different story. This report analyzes claims activity at scale and can help insurers better gauge risk, anticipate emerging risks, identify subrogation opportunities and make smarter decisions for the year ahead.”
While insurers saw declines in claims in 2025, emerging risks are visible in the claims data. Major weather and natural catastrophe events, such as the Los Angeles wildfires, show how underlying risks are becoming more complex.
When comparing the claims activity from the January wildfires to previous catastrophes, losses were driven less by the total acreage burned and more by wildfires impacting densely populated communities with higher home values; smoke damage emerged as a major loss driver, accounting for roughly 30% of claims filed within the first 30 days, highlighting early-stage loss development.
The report also highlighted emerging risks already visible in claims data from 2021 to 2025, such as commercial auto claims involving gig-related workers, which rose 96%, increasing to 10% of all commercial auto claims.
Over the same period, the number of claims involving silica or crystalline dust increased exponentially, rising from just over 100 to just under 2,000. PFAS-related claims also rose over the period, increasing from minimal reported volumes to approximately 700 claims.
Additionally, the number of e-bike-related claims quadrupled, from approximately 1,000 to just over 4,000, driven by growth in rider injuries, fires and thefts.
Drawing on insights from ClaimsSearch®, the world’s largest database of property and casualty claims, the report highlights key developments shaping claims activity across the insurance industry.
Olivia Overman is IA content editor.
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