The Return of Inflation: What it means for insurance

Author: Kai-Uwe Schanz
Contributing author: Pieralberto Treccani

Periods of high inflation challenge the financial security of people and businesses. The inflationary shock of 2021/22, spurred by the pandemic and Russia-Ukraine war, gave rise to cost-of-living crises in many parts of the world, and demographic and economic shifts such as population ageing and the transition to net zero  are expected to exacerbate its effects.

This report examines the implications for insurers and evaluates how they can respond across the value chain to continue to meet their customers' needs in times of inflation. It finds that while the immediate impacts of inflationary episodes on insurers is negative, the value proposition of insurance could increase, as it bolsters financial resilience and offers customers greater peace of mind. 


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