Gallagher Bassett — The Carrier Perspective, 2025 Claims Insights

The global insurance sector is currently experiencing diverse and complex market pressures, with conditions varying significantly by region.

Gallagher Bassett is observing a complicated market tightened by competitive dynamics and economic factors worldwide.

Over two-thirds of global respondents to the company's survey reported that these challenges are driving higher claims costs, ultimately leading to increased premiums.

However, rising claims costs are only part of a larger puzzle. Additional drivers, such as the increased cost of reinsurance, social inflation, regulatory shifts, climate change, and the frequency of natural disasters, have also contributed to higher claims costs worldwide.

While the driving factors are similar, regional nuances have shaped different outcomes across the globe.

For instance, in the Australian insurance market, over half of survey respondents identified climate change-related risks as the most significant driver of premium increases. 

Globally, certain business lines, such as motor insurance, are facing additional factors that are leading to increased premiums.

Contributing factors include increased vehicle repair costs, increased replacement part expenses, and other financial pressures that continue to impact insurers’ loss ratios.

To navigate these pressures, insurers are implementing strategies to manage costs and maintain profitability. 

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