2025 Trends in Property and Casualty Claims: An Overview
Claim volumes in the property and casualty sector experienced a decline across most major lines in 2025, with particularly notable decreases in homeowners and personal auto claims, according to Verisk’s ClaimSearch Trends Report. Homeowners claims dropped by 19% compared to the previous year, while personal auto claims have been on a downward trend for three consecutive years.
In contrast, commercial auto claims increased consistently from 2021 through 2024, before experiencing a 5% decline last year. A significant factor behind this was the rise in claims from gig economy-related activities, which surged by 96% over the five-year span.
The overall reduction in claims was largely attributed to a less intense hurricane season; however, the January wildfires in Los Angeles marked the year’s most significant loss event, resulting in approximately $28 billion in insured losses. This far surpassed the previous records set by the 2018 Camp Fire. Specifically, the Palisades and Eaton fires in Southern California led to substantial claims. The Palisades Fire alone resulted in an estimated insured loss between $20 billion and $25 billion, with higher property values contributing to the financial impact.
Insurers received over 26,000 homeowners claims within a month following the LA fires, with an unexpected 30% of these related to smoke damage, contrasting with just 3% from early Camp Fire claims. However, the report warns of potential increases in smoke-related claims over time, as seen in previous fire events. This highlights the importance of efficient risk management strategies in adapting to changing environmental challenges.
Emerging Risk Categories and Trends
Claim patterns in personal auto theft show a continued decrease, with a 25% drop in theft claims in 2025. The trends in Kia and Hyundai vehicle thefts, which peaked in 2023, have reversed. However, newer patterns emerged, with Infiniti models showing the highest theft-to-collision ratios. Meanwhile, catalytic converter thefts returned to pre-pandemic levels, but rising precious metal prices in 2025 might signal a potential resurgence.
Gig economy activity significantly influenced commercial auto claim trends, rising from 89,000 claims in 2021 to 175,000 in 2025. The increase in food delivery service claims contributed notably to this rise, with gig-related claims now making up a larger percentage of commercial auto claims. Additionally, emerging risk categories like autonomous vehicle and e-bike claims saw considerable growth, with claims increasing fourfold between 2021 and 2025.
In the workers' compensation sector, significant improvements have been made in accelerating access to treatment for injured workers. According to Donald Kent of HCS Network Solutions, timely scheduling and access to appropriate care are crucial in improving recovery outcomes. MedRisk's trend report indicates a nearly 50% reduction in the time between injury and initial treatment from 2021 to 2025, highlighting efficiencies in referral coordination and treatment processes.