Property claims inflation continues to squeeze insurers’ costs despite a general softening over the past 18 months, according to analysis from Claims Consortium Group.

The firm’s anonymised tracker, using a mix of proprietary and public micro and macroeconomic data, found that some cost categories have stabilised while others remain volatile, creating pinch points for insurers and repair networks.

Falling steel prices and stabilising imported wood prices have helped ease overall claims cost pressure. However, doors and window fittings rose 18% in the past year, driving repair and maintenance challenges. Paint and kitchen furniture costs have also risen moderately.

Martyn Cox, head of data and analytics at 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.”

Cox noted that although skills shortages and bottlenecks are gradually improving, construction sector job vacancies have stabilised at just under 30,000, well below the 2022 peaks following 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,” he added.

Cox advised caution when forecasting future 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.”