Claims inflation in non-injury insurance losses: a global review

Excess claims inflation remains a topic of primary concern for (re)insurers worldwide. Our latest report analyses the driving inflationary factors across nine countries in Europe, Asia Pacific, Latin and North America, to assist (re)insurers when addressing the impact of excess claims inflation on their business lines.

The claims landscape continues to shift – prices are rising and claims are becoming more varied, diverse and costly – and failure to adequately address this can lead to under-reserving. The widening protection gap is often attributed to unpredictable natural catastrophes, but excess claims inflation is another significant contributing factor.

The lingering impact of the COVID-19 pandemic on the claims landscape continues to be felt throughout all regions and across multiple business lines due to ongoing business interruption and supply chain disruption. Economic challenges and general public dissatisfaction with governments and corporations are also fuelling globally parties' preparedness to "have a go", resulting in an increase in claims.

Collaboration across the entire insurance industry is likely to assist when addressing these risks. In this report, we discuss the steps (re)insurers may wish to take to protect themselves and their (re)insureds operating in the current environment.