Property claims inflation continues to exert pressure on insurance claims costs, despite an overall softening, according to the latest property claims inflation analysis from Claims Consortium Group, the specialist claims management, insurance technology, and weather data provider.
Claims Consortium Group’s anonymised property claims inflation tracker, based on a mixture of its own and publicly available micro and macro data, includes analysis of movements in construction material costs, skills vacancies which drive bottlenecks and broader economic indicators.
The latest report shows that whilst inflationary pressures impacting property claims have eased over the last 18 months, a number of significant pinch points are emerging/have emerged.
Whilst falling steel prices (-7% to -23%), and a stabilisation in imported wood availability and prices (low single-digit growth), have helped ease the pressure on claims costs, there has been a sharp rise in doors and window fittings costs, up 18% in the last year alone, creating a pressure point for repair and maintenance work. There has also been a rise, albeit moderate at this stage, in paint and kitchen furniture costs.
Martyn Cox, Head of Data and Analytics, Claims Consortium Group commented: “Our property claims costs tracker shows that inflationary pressures, which peaked in 2023, have eased, with many areas seeing flat or even declining prices. This is positive for the insurance market, but significant volatility remains in key categories such as paint, doors, and fittings, which continue to drive cost pressure.
“Skills shortages and bottlenecks are still a challenge, but there are signs of improvement. Construction sector job vacancies have now stabilised at just under 30,000 – far lower than the peaks seen in 2022 after Covid and Brexit. At the same time, ABI figures show a gentle softening in home insurance premiums, with average combined building and contents prices down by just under 1% in Q2 2025 compared with the previous quarter.
“Insurers are right to remain cautious when forecasting claims costs. Volatility in materials, labour, and energy means the market can shift quickly. That’s why ongoing monitoring of inflationary drivers is so important – giving insurers the foresight to manage volatility, protect loss ratios, and maintain fair outcomes for customers.”
Image provided by Claims Consortium Group
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