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US property claims costs are rising despite stable designated catastrophes
Verisk data says Q2 2026 could be among the most expensive quarters for insurers on an average property claims cost basis, even as US claim assignment volumes fell 12.1% year over year.
Property insurance claims are getting more expensive in the United States, even when the number of designated catastrophe events stays steady, according to Verisk data cited by Artemis.
Artemis reports that Verisk expects the second quarter of 2026 could become one of the most costly periods for insurers on an average property claims cost basis. The reinsurance and insurance-linked securities capital outlook may look relatively benign in the current global catastrophe loss environment, but US trends suggest losses could ramp up more quickly when major events occur.
Verisk said US claim assignment volumes in Q2 2026 fell 12.21% from Q2 2025 and were 13.05% below the five-year average, extending a multi year decline. Artemis adds that the drop was concentrated in non-catastrophe claims, with non-CAT assignments down 18.65% versus the five-year average, while CAT assignments slipped 4.29%, pushing CAT claims to 43% of Q2 volume from 34% five years ago.
Artemis also notes that average claim severity is following a typical maturity pattern that could make Q2 2026 one of the highest quarterly average claim costs in recent years. Verisk reported current US average severity at $17,085, and while this is 10.77% lower than Q2 2025, it is only 2.88% below the five-year average, with a projected Q2 2026 figure near $18,794 based on historical maturation and an upper scenario above $19,400 if the stronger Q1 maturation holds. The report points to ongoing inflation pressure, with combined labor and material costs up 4% year over year in the US.