2026-06-01 · Source: Insurance Journal
Summary in 3 Points • Verisk study reveals hail volatility and aging roofs are increasing residential replacement severity despite a 20% decline in claims volume • Roof losses remain high due to persistent challenges, highlighting the need for advanced data analytics and technology solutions • The London Insurance Market must consider these trends for risk assessment and policy adjustments in property insurance --- A recent study by **Verisk** highlights a paradox in the residential roofing sector: while overall claims volume declined by 20% in 2025, roof replacement costs continue to soar. The study attributes this increase to two main factors: the volatility of hail events and the aging of residential roofs. Despite the reduction in claims, the severity of roof losses has not diminished, indicating that these underlying issues are driving up costs. The findings underscore the importance of leveraging **data analytics** and technology to better understand and mitigate these risks. For the **London Insurance Market**, these findings are particularly relevant as they suggest a need to reassess risk models and pricing strategies for property insurance. The persistent high costs associated with roof replacements, despite fewer claims, could impact profitability and require adjustments in underwriting practices. The use of advanced **data analytics** and **artificial intelligence** could provide insurers with deeper insights into weather patterns and roof aging, enabling more accurate risk assessments and policy pricing. **Underwriters** and **risk managers** should consider incorporating these insights into their risk evaluation processes. By understanding the implications of hail volatility and aging infrastructure, they can better anticipate future claims and adjust coverage terms accordingly. **Brokers** might also need to communicate these trends to clients, advising them on potential impacts on premiums and the importance of proactive roof maintenance. Emphasizing the role of **technology** and **data analytics** in managing these challenges could be crucial for maintaining competitive advantage in the evolving insurance landscape.
For the London Insurance Market, these findings are particularly relevant as they suggest a need to reassess risk models and pricing strategies for property insurance. The persistent high costs associated with roof replacements, despite fewer claims, could impact profitability and require adjustments in underwriting practices. The use of advanced data analytics and artificial intelligence could provide insurers with deeper insights into weather patterns and roof aging, enabling more accurate risk assessments and policy pricing.