Impact of Economic Inflation for US Liability Insurance Claims
US liability claims costs have risen by an annual average of 16% over the last five years, well above average rates of economic inflation at around 4%
Social Inflation
Social inflation is a term that describes how insurers’ claims costs are increasing above general economic inflation. This is generally thought to be due to a trend in increasing litigation costs brought by plaintiffs seeking large monetary relief for their injuries. The “social” aspect of the term represents shifting social and cultural attitudes about who is responsible for absorbing risk (the insurer or the plaintiff).
On a broad definition, social inflation refers to all ways in which insurers’ claims costs rise over and above general economic inflation, including shifts in societal preferences over who is best placed to absorb risk.
Personal & Commercial Auto Liability Insurance in the US. Impact of Inflation
Inflationary trends in auto liability insurance, personal and commercial combined, drove loss and defense containment costs between $96 bn and $105 bn higher
Biggest Challenges Facing US Auto & Home Insurers: Slow Growth & Inflation
Slow underlying growth and inflation are among the biggest challenges facing U.S. auto, home, and business insurers
Impact of Social Inflation for P&C Insurance & Commercial Auto Insurance Costs
The phenomenon of social inflation has garnered a great deal of attention in the property and casualty (P&C) insurance industry
How Insurers Respond to Inflationary Shocks? Insurance Economics Perspective
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
Impact of Inflation & Rising Interest Rates on Insurance Industry
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
How P&C Insurance Companies in the United States Can Increase Inflation Resilience?
As property and casualty insurers in the United States struggle to maintain profitability, executives will need to direct a coordinated response across pricing, underwriting, claims
How Does Inflation Challenging Insurer Profitability and Insurance Rates?
Raising revenue hasn’t been an issue for most nonlife insurers, thanks to some of the highest property-casualty insurance rate increases posted in years
How Do Insurance Markets Respond to Inflation? Negative Effects
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
3 Tips for Reinsurers to ride out the Inflation Cycle
Inflation a challenging environment for (re)insurers, which need to calculate how they should build elevated costs into their pricing models
The directors and officers (D&O) insurance market has experienced favorable results in recent years, but ongoing risks and market uncertainties could challenge sustainability
Integrating real-time data analytics through big datasets, AI, and ML technologies empowers companies to detect high-risk policies before solidifying agreements
U.S. life insurers have used reinsurance to reduce exposure to long-term care (LTC) insurance. The transactions strengthen balance sheets, improve capital efficiency
Lloyd’s has shared the results from the 2025 Lloyd’s Market Policies and Practices (MP&P) return with market firms, which shows continued progress towards an inclusive