As many of us have seen firsthand over the past year, the impact of global inflation has taken a major hit on insurance companies. A quick scroll through LinkedIn will tell you just how bad it’s gotten, with some large carriers laying off nearly entire divisions of their companies.
Companies like Liberty Mutual have already warned their policyholders that it’s likely premiums will rise due to increased housing material and auto repair fees, labor costs, and the chip shortage. And, according to the Bureau of Labor Statistics, 2022 inflation hit its peak in June at 9.06%, the highest we’d seen in 40 years since the 1981-82 recession. It’s currently sitting at 8.2%, but still a far cry from the 1.81% in 2019 prior to the pandemic.