Insurance Claims Drop in 2025, but Risks Become More Concentrated and Complex
Event summary
- Insurance claims volumes declined in 2025, with homeowners’ claims falling 19% YoY to 5.27 million, the lowest in five years.
- Gig-economy-related commercial auto claims surged 96% since 2021, now accounting for 10% of all commercial auto claims.
- Auto theft claims dropped 25% in 2025, but theft risk became more concentrated among select vehicle brands.
- California wildfires in January 2025 led to significant losses, with smoke damage accounting for 30% of claims filed within the first 30 days.
The big picture
Verisk's report highlights a paradox in the insurance industry: while claims volumes have declined, the underlying risks have become more complex and concentrated. This trend is driven by emerging risks such as gig-economy activities, targeted auto theft, and severe wildfires. The data suggests that insurers need to adapt their strategies to better gauge risk and anticipate emerging threats. The strategic implications are significant, as the industry must balance declining claims volumes with the need to manage increasingly severe and complex losses.
What we're watching
- Gig-Economy Risks
- How the rapid growth of gig-related commercial auto claims will impact insurers' underwriting strategies and risk management.
- Wildfire Losses
- Whether the long-term development of wildfire-related losses will continue to strain insurers' balance sheets.
- Auto Theft Trends
- The pace at which targeted auto theft claims will evolve, particularly with fluctuations in precious metal prices.
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