Inflation impacts: short-term claims spike in US property insurance, longer-running headwinds for casualty

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.

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Economic Insights Inflation impacts: short-term claims spike in US property insurance, longer-running headwinds for casualty

sigma 3/2021 - World insurance: the recovery gains pace

The world economy is recovering strongly from the COVID-19 crisis.

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