Sedgwick, the world’s leading risk and claims administration partner, has released its 2026 Claims Administration Intelligence Report, examining claims trends and pressures across the UK and Europe.
The report draws on general market statistics and company-sourced data covering 2.3 million losses recorded across Europe since 2020, using this foundation to assess pressure points in claims administration, market evolution, and the wider implications for large organisations managing complex, high-value programmes.
Among the headline findings, liability claims volumes have continued to climb, with high-value claims of £100,000 or more more than tripling since 2020.
Third-party damage motor claims remain the largest by volume and have nearly doubled since 2021, increasing at close to twice the rate of general inflation.
Climate-related claims have consistently made up between 19% and 22% of total volumes, with average costs more than doubling since 2022 and 2025 volumes reaching a six-year peak. Climate risk reserves have also grown sharply, rising from 13% to 22%.
Meanwhile, the average severity of occupational disease and exposure claims has nearly tripled, even as volumes fell sharply following the pandemic, driven largely by industrial disease claims. For injury costs, slips, trips, and falls have emerged as the leading driver, with severity increasing from £5.7k to £8.4k.
The report also addresses the growing role of automation and artificial intelligence in claims handling. Whilst some insurers report annual savings of more than £60m through automation, alongside a 65% reduction in customer complaints, 77% of consumers still prefer human interaction when dealing with complex or emotionally sensitive claims.
The report highlights that trust increases fourfold when humans remain involved in the process, and that 75% of claims professionals consider active human oversight essential for AI to function effectively. It also cautions that AI systems trained on historical data risk encoding existing inequities and producing unfair outcomes, framing bias as an emerging operational risk.
The findings and predictions contained within the report will be monitored by Sedgwick’s expert team throughout the year.
Sedgwick head of international business development James Norman said, “Claims frequency is not the primary story anymore, severity is. Challenging claims now come with more cost and complexity than ever, and they are reshaping portfolios and exposing organisations to significant risk.
“Early decisions, technical triage, intelligent automation, and expert human intervention are critical now, and this report validates the position our team at Sedgwick is in to guide organisations of all sizes through this evolving landscape.”
Sedgwick strategic client director, head of corporate Mark Gilbert said, “The claims administration landscape now requires organizations to be nimble, adaptive, and have a full understanding of the broadening risks facing them.
“Claims have become one of the primary and material drivers of financial performance. Decisions aimed at reducing the severity and frequency of losses, informed by risk insight from claims handling, directly influence total cost of risk, strengthen balance sheets, and enhance overall business resilience. Providing risk insight is no longer a nice to have, it’s a fundamental requirement of a claims manager’s role.”
Sedgwick provides services across claims administration, loss adjusting, benefits administration, and product recall. With more than 33,000 colleagues and 10,000 clients operating across 80 countries, the company combines specialist expertise with AI-enabled technology. Its majority shareholder is The Carlyle Group, with Stone Point Capital LLC, Altas Partners, CDPQ, Onex, and other management investors holding minority stakes.
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