Property claims inflation is continuing to weigh on insurers despite an overall easing of pressures, according to the latest analysis from Claims Consortium Group.
The company’s newly released property claims inflation tracker, based on anonymised data from both internal and public sources, highlights ongoing volatility in construction materials and labour that continue to drive claims costs.
The report shows that while inflationary pressures have softened compared with their 2023 peak, several new pinch points have emerged. Falling steel prices, which dropped between 7% and 23%, and improved availability of imported wood – where price growth has remained in the low single digits – have eased some of the strain. However, sharp cost increases in other categories are offsetting these improvements.
The most notable rise has been in the price of doors and window fittings, which jumped 18% in the past year, creating new cost burdens for repair and maintenance work. Paint and kitchen furniture have also experienced moderate increases, adding to the complexity of claims forecasting.
“Our property claims costs tracker shows that inflationary pressures, which peaked in 2023, have eased, with many areas seeing flat or even declining prices,” said Martyn Cox (pictured), head of data and analytics at Claims Consortium Group. “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, though less acute than in recent years, remain a challenge, according to the report. The construction sector is still facing nearly 30,000 job vacancies, though this is far below the post-pandemic and Brexit peaks of 2022.
Meanwhile, the Association of British Insurers (ABI) has reported a slight softening in home insurance premiums. Average combined buildings and contents policies fell by just under 1% in the second quarter of 2025 compared with the previous quarter.
“Insurers are right to remain cautious when forecasting claims costs,” Cox said. “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.”
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