Most business leaders think of claims as historical events. Something happened, the loss was reported, and the company moved on. But claims are more than individual incidents. They are signals that tell a story about how risk is evolving inside an organization and what that means for the year ahead.
Carriers study these signals closely. They look for frequency, severity, patterns, gaps, and corrective action. Leaders who do the same can use claims data as a strategic tool rather than a summary of past events. As you prepare for 2026, here is how to interpret the trends that often influence underwriting decisions, pricing, and coverage availability.
Claims Rarely Happen in Isolation
A single incident may be an outlier, but repeated causes of loss usually point to an underlying issue. Underwriters know this, which is why they tend to focus less on the individual claim and more on the context.
If multiple injuries, fleet incidents, or property losses share similar characteristics, it becomes a risk story. Once it becomes a story, it becomes part of your renewal results.
The companies that manage this well are the ones that investigate not just what happened but why it happened and what changed afterward.
Frequency Is Often More Important Than Severity
Large claims can be disruptive, but repeated smaller losses usually concern carriers more. A pattern of slips, near misses, equipment incidents, or preventable injuries may suggest that controls are not fully effective.
Leadership teams can use this insight to prioritize improvements, whether that means updating training, addressing supervision gaps, revising procedures, or investing in equipment. When these changes can be demonstrated to an underwriter, the narrative improves.
Near Misses Are Data Points Too
Many organizations do not track near misses consistently, yet these events often predict future claims. A high volume of near misses usually indicates that risk is increasing even if losses have not yet occurred.
Near miss data helps leaders understand where risks are changing before a carrier identifies the issue. Proactive adjustments at this stage can improve both safety outcomes and renewal discussions.
Claims Trends Are Also Operational Trends
Claims do not only reflect accidents. They often reflect operational realities.
For example:
• A rise in auto incidents may signal fatigue, poor routing, or inconsistent accountability.
• A spike in property damage may reflect aging equipment or deferred maintenance.
• An increase in minor injuries may indicate workforce turnover or insufficient onboarding.
• A pattern of similar claims may suggest training gaps or a need for clearer procedures.
When leaders look at claims as operational indicators, they are able to address root causes and improve performance beyond insurance alone.
Documentation Is Part of the Risk Story
The quality of your documentation can influence the way a carrier views your organization. If incident reports, corrective actions, and training records are consistent and up to date, underwriters gain confidence in your safety culture and operational discipline.
If documentation is inconsistent or incomplete, underwriters may assume the underlying controls are the same.
Year end is an ideal time to review whether your documentation reflects your actual efforts.
Claims Performance Can Influence Coverage Options
As carriers refine their appetite for certain industries, they rely heavily on claims quality to determine who receives preferred terms. Strong claims management and clear corrective actions can improve your access to broader coverage options, more competitive pricing, and additional capacity.
In challenging lines like auto, liability, and property, this becomes especially important.
A Smarter Approach to Claims in 2026
Businesses that want to use claims more strategically can start by asking:
• What story does our claims history tell right now?
• Have we addressed the root causes behind recent losses?
• Do we have documentation that shows improvement?
• Are there operational changes we need to make before next year?
• How can this data help us negotiate better terms?
These are not compliance questions. They are business strategy questions. Claims trends help leadership teams see risk from a wider angle, and that perspective often leads to stronger outcomes.
Positioning Your Business For What Comes Next
Understanding how claims shape underwriting decisions gives leaders more control over their insurance program. It brings clarity to renewal expectations, highlights improvement opportunities, and supports more informed decision-making.
If you would like support analyzing your claims trends or exploring cost-saving opportunities for 2026, reach out to a Liberty advisor or request a deeper review of your program today: https://libertycompany.com/contact/
