Verisk Report: 2025 Insurance Claim Volumes Fall as Loss Complexity and Severity Rise

A recent report from Verisk reveals that insurance claim volumes declined in 2025, primarily driven by a relatively quiet hurricane season. While the frequency of claims fell significantly, particularly within the homeowners' segment, the severity of individual losses has continued to trend upward. The report highlights that claims are becoming increasingly complex and prolonged due to large-scale disasters such as the Los Angeles wildfires. Furthermore, emerging risks including PFAS litigation and gig economy liabilities are complicating the claims resolution process. This shift suggests potential pressure on future reserves for insurers despite the short-term benefit of lower claim frequency on margins. Investors are closely monitoring the performance of major industry players like PGR and TRV as they navigate these evolving risk dynamics.