Insurance claims will continue to decline in 2025, even as the risks underpinning them become more concentrated and harder to manage, leading to more severe and longer-term losses, according to a report released by Verisk, a provider of data analytics and technology for the insurance industry, based on data from its ClaimSearch platform.
Claim volume is down in several major categories compared to 2024, with homeowners reporting significantly fewer claims, in part due to a quieter hurricane season.
However, large-scale events such as the Los Angeles wildfires bring more complex damage patterns, and the effects may be felt over longer periods of time.
Homeowner claims fell 19% year over year to 5.27 million, the lowest level in five years since peaking in 2024. Commercial real estate claims also declined, from 910,000 in 2023 to 710,000. Personal auto claims declined slightly by nearly 3% in 2025, after falling by about 5% the previous year.
Commercial auto claims fell 5% but remain well above 2021 levels, indicating continued growth in the risks associated with commercial driving. Workers’ compensation and general liability claims were largely unchanged, pointing to stable but ongoing risks in the core business sector.
The data also reflects the growing influence of new risk factors. Claims related to gig economy activity have increased significantly between 2021 and 2025, with gig-related commercial auto claims increasing by 96% and now accounting for 10% of the total.
This trend was mainly driven by food delivery services, which saw a 300% increase in claims, while claims related to ride-hailing services increased by 66%.
Other emerging risks are also becoming increasingly apparent. During this period, claims involving silica or crystalline dust increased dramatically from just over 100 to nearly 2,000, while claims related to PFAS chemicals increased from negligible levels to approximately 700.
There has also been a significant increase in e-bike-related claims, from around 1,000 to more than 4,000, with incidents involving injuries, fires and theft driving the increase.
The January 2025 wildfires in Los Angeles highlighted a shift in how losses develop. The scale of damage is less affected by the size of the affected area and more affected by fires in densely populated areas and higher value homes.
Smoke damage became a significant factor, accounting for approximately 30% of claims within the first month. Past wildfire events have shown that such losses can continue to occur for several years, with a large proportion of claims historically being filed long after the initial fire.
Auto theft trends show an overall decline in claims volume in 2024 and 2025, but the risk becomes more concentrated. Theft claims fell 25% in 2025, following a similar drop the previous year.
Still, certain vehicles are targeted more frequently, including models from Infiniti, Kia, Hyundai and Acura, which have relatively high theft-to-collision ratios. Catalytic converter thefts continue to track fluctuations in precious metals prices, and increases in platinum, palladium and rhodium prices in 2025 could signal renewed risks in this area.
“Claims data is often the earliest signal of how risk is changing,” commented Shane Riedman, President of Anti-Fraud Analytics at Verisk. “While overall volumes are down in 2025, the underlying loss patterns tell a different story. This report analyzes large-scale claims activity to help insurers better assess risk, anticipate emerging risks, identify subrogation opportunities and make more informed decisions for the year ahead.”