5 Game-Changing Trends in Insurance and Loss Assessment to Watch for in 2025

The insurance and loss assessment industry is undergoing a transformative shift driven by technology, environmental factors, and evolving consumer needs. Staying ahead of these changes is crucial for both insurers and policyholders. In this blog, we explore five key trends that promise to redefine the landscape in 2025 and highlight how Harris Balcombe is continually innovating to stay at the forefront, redefining how we work with our clients, be it domestic, commercial or landlords.

Artificial Intelligence is no longer just a buzz word, it is part and parcel of our everyday life, and it’s important to accept that it is revolutionising the insurance industry by automating processes, such as claims, improving damage and loss assessments, as well as enhancing fraud detection. Tools such as AI-powered chatbots are enabling swifter and more accurate responses to client queries ahead of speaking to a loss assessor.

At Harris Balcombe we believe that AI is only, initially, as good as the information it is being fed and it learns from how it interacts with its users/programmers. With this in mind, Jeremy Balcombe comments that “already policyholders are being unfairly investigated or flagged as risk/fraud indicators and the integration of AI into this process will only support the unfair/unjust assumptions made which in turn, will strengthen the belief of the Special Investigator managing the case that their initial 'hunch' was right.”

As advanced as technology is and is still becoming, there still needs to be a balance with human expertise and understanding for nuances where AI may fall short and this is why having a loss assessor in person is still so valuable. Human involvement and interaction is essential to interpret situations which are more complex and make judgment calls that AI simply cannot replicate.

At Harris Balcombe, we have combined technology with professional judgement to deliver precise assessments. As a leader in the industry, our virtual Assistant AI chatbot with a live AI Avatar - Voccall Chat - helps our clients and prospects get immediate answers to their questions efficiently putting them at ease by using our very own AI knowledge base. This helps us streamline our communication but also ensures that clients feel supported and informed throughout their experience with us. While AI tools excel in efficiency, we still ensure that human expertise and professionalism remains central when working with each of our clients and their nuanced cases.

Blockchain in claims is emerging as a game-changer in insurance and loss assessing, offering immutable, unchangeable and real-time records for claims processing. By enhancing trust and transparency, this technology can prevent any disputes and expedite settlements for all policyholders.

Blockchain's decentralised ledger ensures that once data and claim details are recorded, it cannot be altered or tampered with. This creates a single source of information for all parties involved - the insurers, assessors, adjusters and policyholders. In addition, blockchain enables real-time sharing of information among all stakeholders, streamlining collaboration as up-to-date records can instantly be accessed.

Due to blockchain's transparency, it is easier to detect inconsistencies and duplications throughout the whole claim process, thereby reducing any fraudulent activities.

Dedicated to leveraging cutting-edge technologies to drive efficiency and reliability, Harris Balcombe strives to remain at the forefront of innovation in its operations. By championing the principles and potential of blockchain technology, we are shaping the future of smoother and more transparent claims processes for all our clients.

Natural disasters and Acts of God such as floods, earthquakes, storms and wildfires are becoming more and more frequent. According to the UK Climate Change Committee, the frequency of such events, including extreme heat waves to devastating rainfall, has increased over the past decade. Statistics reveal an astounding rise in extreme weather patterns, which increases the likelihood of the intensity and severity of these disasters.This drastic increase in extreme weather events has led to a surge in insurance claims. Assessing these types of claims is increasingly complex due to the many exclusions, often with extra hidden costs, thereby requiring innovative and comprehensive approaches.

With extensive experience in managing complex claims throughout the UK related to climate change and disasters as well as denied claims, Harris Balcombe combines both expertise and adaptability to navigate these climate change insurance claims challenges effectively. Our team’s ability to handle high-risk claims ensures our clients receive the support they need during such events.

According to the General Insurance Council, “parametric insurance describes a type of insurance contract that insures a policyholder against the occurrence of a specific event by paying a set amount based on the magnitude of the event, as opposed to the magnitude of the losses in a traditional indemnity policy.” At the end of 2024, and into 2025 parametric insurance is transforming the industry by offering pre-agreed payouts based on specific triggers in a claim, such as rainfall levels or earthquake magnitudes.

Aiming to integrate this insurance model in some instances in the near future, Harris Balcombe will operate within a hybrid insurance framework, where relevant, to deliver accurate and reliable assessments. Their proactive approach will ensure our clients benefit from the efficiency of parametric insurance without compromising on accuracy, which is a win-win.

Cyber attacks and hacks are on the rise, affecting both individuals and businesses. As cyber threats grow in complexity, the demand for cyber insurance has never been higher. Assessing losses from data breaches or ransomware attacks requires advanced technological tools and a high level of expertise. With attackers constantly evolving their methods, insurers are under increasing pressure to refine and strengthen their policies.

With the surge in cyber attacks and the increasing demand for cyber insurance assessments and cyber insurance, Harris Balcombe stands out as a leader in navigating this rapidly evolving landscape. Our deep understanding of emerging risks positions us as a trusted partner for handling the complexities of cyber insurance claims. Specialising in assessing intangible losses like data breaches and ransomware attacks, we employ cutting-edge tools and processes to deliver precise evaluations.

As you can see, the insurance and loss assessment landscape in 2025 is set to be shaped by technological innovation, environmental challenges, and new risk models. At Harris Balcombe, we’re committed to blending both cutting-edge technology with human expertise in order to be a trailblazer in navigating these loss assessment trends.

Whether it’s leveraging AI for faster claims resolution, utilising blockchain for transparency, or managing complex climate and cyber-related claims, Harris Balcombe continues to set the standard for excellence in the industry. If you’d like to discuss any of these trends with our expert team, please do get in touch or Start your Claim now.