inflation News

Fitch: Inflation Tied to Claims Severity Boosts U.S. P/C Insurers’ Reserve Risk in Casualty Lines

Fitch Ratings said it expects the U.S. property/casualty insurance industry to generate modest underwriting improvement in 2024, following poor auto insurance results and inordinate catastrophe losses in 2023. Persistently high inflation and slowing economic growth, along with an expectation for …

P/C Insurers Face Challenging Claims Dynamics as Frequency, Severity Rise: Swiss Re

The property/casualty insurance industry is confronting challenging claims dynamics, with rising frequency and severity of claims despite decreases in economic inflation, according to Swiss Re. The pace of claims growth in the liability line of business challenges the insurability of …

CCC: Shifting Treatment Patterns Bringing More Expensive Auto Injury Treatments Earlier On

The average claim cycle time for auto injury has dropped below pre-pandemic durations after rising rapidly in 2020 and 2021, but medical treatment patterns shifted away from conservative care, according to a new report by CCC Intelligent Solutions. The report …

WCRI: Inflation Not a Big Deal for Workers’ Comp, Yet

While fast-rising prices in the past year drove up claim costs for auto and property insurers, inflation has been a more ho-hum affair for the workers’ compensation line and health care in general, according to a new report by the …

Premiums Fail to Keep Pace with Auto Claims Inflation

Insurance claims inflation has risen faster than the underlying consumer price index, outpacing auto insurance premium increases, according to a new study by the American Property Casualty Insurance Association (APCIA). The national trade association for home, auto and business insurers …

Increasing Cost of Claims Drives State Farm Out of Calif. Property Market

An insurer group was quick to respond over the weekend after State Farm announced it will cease accepting new applications for business and personal lines property/casualty in California to deal with increased risks and higher construction costs. The American Property …

Viewpoint: Closing the Gap on Insurance to Value

In April 2022, a fire broke out in a Walmart distribution center in Plainfield, Indiana. The fire burned for more than three days, all of the approximately 1,000 employees got out safely and the facility remains closed. Occasionally we’ll see …

APCIA Says Property Insurance Market ‘Hardest in a Generation’

A combination of historic high inflation and a growing frequency of natural catastrophes is creating the hardest market in a generation for property insurance, the American Property and Casualty Insurance Association says in a new white paper. “The growth of …

Swiss Re: Inflation Pushed P/C Claims Costs Up by as Much as 7.5%

High inflation alone led to an increase in property/casualty claims of 5-7.5%, across five key markets in 2022, according to Swiss Re research. “In 2023, we expect that inflation should lead to an additional increase of 3.5-6.5%,” said Swiss Re …

Costs Prompt Cedar Rapids to Assess Flood Control Efforts

CEDAR RAPIDS, Iowa (AP) — High inflation and construction cost spikes are prompting city officials to study the impact of growing expenses on its permanent flood control system. But City Manager Jeff Pomeranz recently said during a City Council session …