The UK insurance market needs to do more to cut the landfill waste created by claims handling, according to research from the Chartered Insurance Institute.
The report, No Time to Waste, was produced by the CII's New Generation Programme 2024/25 Claims Group. It found that good practice is already in place across parts of the market, but that insurers, brokers, loss adjusters and suppliers are applying it unevenly.
The research examined how firms throughout the claims supply chain could make better use of landfill avoidance solutions and build sustainability into everyday claims decisions. It arrives as insurers face mounting pressure from customers, regulators and other stakeholders to show real progress against their environmental commitments.
Claims professionals taking part in the research described measures already in use across the market, including repairing damaged items rather than replacing them, recycling programmes, networks of sustainable suppliers, donating salvaged contents to charity, and zero-to-landfill strategies aimed at diverting all claims waste away from disposal sites.
The scale of the opportunity is significant, even though the report doesn't put a figure on it specifically for insurance claims. Property claims in particular generate construction-type waste such as flooring, plaster, fittings and damaged contents, and UK government figures show the country generated an estimated 59.4 million tonnes of non-hazardous construction and demolition waste in 2020, a figure covering the whole economy rather than insurance claims alone.
Matthew Connell, director of policy and public affairs at the CII, said claims handling is a meaningful part of the industry's wider environmental role.
"Insurance has a vital role to play in supporting the transition to a more sustainable economy, and claims handling is an important part of that journey," he said. "This research highlights encouraging examples of good practice already taking place across the market, while also showing there is considerable potential to further reduce landfill waste through greater collaboration, education and innovation."
The report identified several obstacles keeping repairable and recyclable material headed for the skip: cost pressures, customer expectations, limited awareness of available salvage and recycling options, and the need to settle claims quickly.
Those pressures pull in different directions. A policyholder waiting on a flood or escape-of-water claim usually wants the fastest route back to normal, and a like-for-like replacement can feel safer to a handler than a repair the customer might dispute.
The research also exposed an education gap within the industry itself. Some participants admitted they had never considered the environmental impact of claims handling before taking part in the programme. Others argued sustainability needs to become a routine, visible part of claims conversations, backed by practical tools and clearer industry guidance.
Respondents wanted more transparency about how claims operations perform on environmental measures. They called for firmer guidance on when to repair rather than replace, stronger accountability for suppliers, better data on what actually happens to waste, and closer collaboration across the claims supply chain.
For brokers, this is a practical opportunity: brokers can help steer clients toward policies with green clauses and influence who handles a loss when it arises. Loss adjusters and claims managers control a large share of claims spend, and some have already introduced their own programmes. Crawford's Zero to Landfill policy is one example already in operation, which the firm has used, among other things, to repurpose reclaimed timber from agricultural losses into wildlife habitats rather than sending it to landfill, in partnership with the Community Wood Recycling Project.
The data point may matter most of all. Without consistent figures on how much claims waste is recycled, reused or sent to landfill, firms will struggle to show customers or regulators the progress they're being asked for, and will struggle equally to prove that sustainable options need not add cost or delay.
The CII said the report is intended to spark wider discussion across the insurance profession and identify practical steps to reduce claims waste. It is the latest output from the institute's New Generation Programme, which brings together CII members early in their careers to tackle real-world sector challenges.
