Inflationary trends in auto liability insurance, personal and commercial combined, drove loss and defense containment costs between $96 bn and $105 bn higher
Natural catastrophe-related losses will continue to be the largest risk to Japanese nonlife insurers’ earnings in fiscal year 2023, though the effects of inflation are catching up
Every insurer should closely monitor price developments, focusing on the drivers relevant to the respective insurance coverages, such as repair costs, construction prices or medical inflation
The immediate impact of inflation on non-life (P&C and health) insurers’ earnings is negative, primarily through rising future claims costs on current insurance policies
In response to high inflation, central banks have hiked their base rates, which, in turn, can impact the balance sheets of (re)insurers as a result of fixed-interest securities falling in value
The insurance industry is often described as “recession proof” but it’s definitely not inflation-proof. We’ll try to cover the what, why, and how of inflation