From: Captive International
Despite recent falls in headline rates of inflation, the impact of previous rises in inflation will continue to be felt for a while, attendees heard at the Captive Insurance Companies Association’s annual conference in Scottsdale, Arizona.
That was the key debate of a panel comprising Rob Anderson, chief risk officer & chief actuary, Palms Insurance Company; Derek Freihaut principal & consulting actuary, Pinnacle Actuarial Resources; and Matt Gravelin, senior vice president consulting, Brown & Brown.
They pointed out that in recent years, high inflation and supply chain challenges have become impossible to escape and that while inflation is slowly returning to longer-term norms, insurers are still feeling the pinch.
The panel start with a high-level briefing that made the case that inflation is a monetary phenomenon that many economists admit is imperfectly understood at times.
Looking at the overall impact of inflation the panel said that if inflation goes up, so do premiums, with reinsurers also being affected.