Crawford & Company has released its latest report outlining key trends and operational pressures that continue to reshape the global insurance claims environment.
The report identifies a measurable increase in both the frequency and severity of extreme weather events. According to Crawford, these developments are contributing to a “new normal” characterized by climate change-driven catastrophes, which are increasing volatility across the insurance sector.
The report emphasizes the need for insurers and claims professionals to adopt new methodologies to manage the growing scale and complexity of large-loss events.
Rising inflation remains a central concern. The report states that elevated costs for building materials and labor – partly due to ongoing global supply chain issues and international tariffs – are driving up the overall cost of claims.
Additionally, regulatory requirements in some jurisdictions mandate enhanced rebuilding standards, which further extend claim timelines and increase expenditures.
Business interruption claims are also growing in both volume and impact. In 2025, 31% of companies identified business interruption as a major risk.
The report notes that this trend is driven by the increasing frequency of natural catastrophes and disruptions in global supply chains, both of which have led to more prolonged and financially significant operational stoppages for businesses.
In response to these challenges, Crawford outlines a range of proactive solutions. These include using a combination of catastrophe modeling data, satellite imagery, and other technologies to assess property conditions before and after weather events.
The report underscores the complexity introduced by multiple events affecting the same region in short succession, which makes it more difficult to differentiate between initial and subsequent damage.
Crawford also highlights its continued investment in technology, including the integration of AI-powered capabilities to support adjusters throughout the claims lifecycle.
The company points to the need for ongoing training and development to prepare the next generation of loss professionals, and stresses the importance of drawing diverse talent into the field.
By 2025, over half of insurance claims processing is expected to involve automation or AI tools. These technologies are being deployed to reduce turnaround times, support decision-making, and free up adjusters to manage more complex cases.
Rohit Verma (pictured above), president and CEO of Crawford & Company, commented that the industry must move beyond traditional approaches to keep pace with a changing claims environment.
“It is imperative that as an industry we are thinking far beyond traditional approaches and developing pioneering initiatives built upon an expanding base of expertise to ensure we can continue to deliver for clients now and into the future against such an uncertain and rapidly changing loss backdrop,” Verma said.
Broader global claims trends further support the themes presented in Crawford’s report. In 2024, natural disasters worldwide caused an estimated $320 billion in economic losses, of which only $140 billion were insured.
This level of loss marked the highest insured total since 2017 and highlighted the financial exposure tied to urban development in high-risk regions, as well as the intensifying effects of climate-related events.
Alongside this, the gap between insured and uninsured losses remains a growing concern for the industry.
With just 40% of total losses from major catastrophes covered by insurance, Crawford’s call for innovation and expanded capacity is echoed by the wider market, which is increasingly focused on narrowing this protection gap – particularly in developing economies where insurance penetration remains limited.
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