Emerging Risks in Claims Handling: Key Trends for 2024 - 2025

The insurance and reinsurance sectors are undergoing significant transformation, with claims handling, risk management, and underwriting trends evolving at a rapid pace. Economic shifts, climate-related disasters, and technological advancements are driving new challenges and opportunities within the industry.

As we move further into 2025 and beyond, insurers must stay ahead of emerging risks and market trends to maintain stability, improve claims processing, and mitigate financial exposure. With stricter regulatory oversight and growing customer expectations, adapting to these changes is no longer optional.

Below are the key trends shaping claims handling and risk management in the coming year:

• Climate-related claims are rising due to extreme weather events, forcing insurers to reassess risk modeling and policy pricing.
• Artificial intelligence is streamlining claims processing, fraud detection, and underwriting assessments.
• Cyber insurance claims are increasing as businesses face more frequent and sophisticated data breaches.
• Insurers are shifting toward predictive analytics to proactively assess and manage claim risks before they escalate.

Understanding these market trends is essential for insurers looking to enhance claims efficiency, improve risk forecasting, and maintain customer trust. By leveraging new technologies, refining underwriting models, and staying informed on global economic factors, insurance providers can navigate these evolving challenges with confidence.

Arcadian continues to provide industry-leading insights, helping insurers and reinsurers adapt to the fast-changing landscape of claims handling and risk management.