Inflation impacts: short-term claims spike in US property insurance, longer-running headwinds for casualty
Article information and share options
Strong recovery from last year's recession and supply-chain shortages are driving a surge in inflation, especially in the US.
The key takeaways from this edition of Economic Insights are:
- We expect a short-term increase in US property claims severity, driven by a temporary 10% surge in home construction prices.
- Based on past correlations, a rise in healthcare expenses and wage inflation could also push casualty claims higher in the medium term.
- Social inflation will continue to play an stronger role in driving up US claims severity in the medium.