Claims Volumes Fell to Five-Year Low in 2025 as Emerging Risks Intensify

Insurance claims volumes in the United States declined across most lines in 2025, but risks remain elevated as insurers navigate complex and concentrated claims, according to an annual report from Verisk.

Claims volumes were lower in 2025 than 2024 across personal and commercial lines, Verisk’s Annual Insurance Claims Trends Report found. The report draws on insights from ClaimsSearch.

There were 5.3 million homeowners claims in 2025, the lowest level in the past five years and down 19% year-over-year from 6.5 million in 2024.

Related: Report: Auto Claims and Repair Becoming More Complex

Personal auto claims fell to 31.6 million last year, extending a streak of three straight years of declining claim volume.

Commercial property saw 710,000 claims in 2025, down from 910,000 in 2023. Commercial auto claims volume fell to 1.8 million in 2025, down 5% from the prior year.

While insures saw declines in claims in 2025, major weather and natural catastrophe events such as the Los Angeles wildfires show how underlying risks are becoming more complex, according to Verisk.

Smoke damage emerged as a significant driver of claims from the January 2025 L.A. wildfires. More than 7,800 smoke claims were filed in the first 30 days post-fire. More smoke claims could be filed in the years to come, as historical patterns indicate smoke claims may continue to develop for years. The fires prompted state officials to look closely at smoke damage, and now a bill to create a statewide framework for handling wildfire smoke damage insurance claims is working its way through California Legislature. The Smoke Damage Recovery Act is backed by Insurance Commissioner Ricardo Lara, who said the bill stems from the recovery process after the L.A. wildfires and smoke damage claims that arose.

The report also highlighted emerging risks already visible in claims data from the past years.

Related: Mitchell: Tariffs, Technology and Parts Volatility Reshaping Auto Repair Landscape

From 2021 to 2025, commercial auto claims involving gig-related workers rose 96%, rising to 10% of all commercial auto claims.

Over the same period, the number of claims related to silica dust (cancer-causing substances) rose from just over 100 claims to roughly 2,000 claims.

Additionally, the popularity of e-bikes has led to a rise in claims involving battery related fire risks and rider injuries. The number of claims involving e-bikes quadrupled from roughly 1,000 claims in 2021 to more than 4,000 claims in 2025, the report found.

“Claims data is often the earliest signal of how risk is changing,” said 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 analyzes 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.”