A report from Verisk, a data analytics and technology provider to the insurance industry, based on data from its ClaimSearch platform, shows that insurance claims continued to fall in 2025, although the risks underpinning those claims became more concentrated and harder to manage, contributing to more severe and prolonged losses.
Claims volumes declined across several major lines compared with 2024, with homeowners’ claims seeing a notable reduction, partly reflecting a quieter hurricane season.
However, large-scale events such as the Los Angeles wildfires introduced more complicated loss patterns, with impacts likely to unfold over an extended period.
Homeowners’ claims fell by 19% year on year to 5.27 million, marking the lowest level in five years after a peak in 2024. Commercial property claims also decreased, dropping to 710,000 from 910,000 in 2023. Personal motor claims edged down by nearly 3% in 2025, following a decline of around 5% in the previous year.
Commercial motor claims were down 5%, though they remained well above 2021 levels, indicating sustained growth in exposure linked to commercial driving. Workers’ compensation and general liability claims remained broadly unchanged, pointing to stable but persistent risk in core commercial sectors.
The data also reflects the growing influence of newer risk factors. Claims associated with gig economy activity rose significantly between 2021 and 2025, with gig-related commercial motor claims increasing by 96% and now accounting for 10% of the total.
This trend was largely driven by food delivery services, which saw a 300% rise in claims, alongside a 66 per cent increase linked to ride-hailing.
Other emerging exposures are becoming more visible. Claims involving silica or crystalline dust rose sharply from just over 100 to nearly 2,000 during the period, while claims linked to PFAS chemicals increased from negligible levels to around 700.
E-bike-related claims also grew considerably, rising from approximately 1,000 to more than 4,000, with incidents involving injuries, fires and theft contributing to the increase.
The January 2025 wildfires in Los Angeles highlighted a shift in how losses are developing. The scale of damage was influenced less by the size of the affected area and more by fires occurring in densely populated locations with higher-value homes.
Smoke damage emerged as a significant contributor, accounting for around 30% of claims within the first month. Previous wildfire events suggest that such losses may continue to emerge over several years, with a notable share of claims historically being filed well after the initial incident.
Motor theft trends showed an overall decline in claim volumes across 2024 and 2025, but with risk becoming more focused. Theft claims fell by 25% in 2025, following a similar drop the year before.
Despite this, certain vehicles were more frequently targeted, including models from Infiniti, Kia, Hyundai and Acura, which recorded relatively high theft-to-collision ratios. Catalytic converter theft continued to track fluctuations in precious metal prices, and increases in the value of platinum, palladium and rhodium during 2025 may indicate renewed risks in this area.
“Claims data is often the earliest signal of how risk is changing,” commented 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 analyses 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.”
