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Creeping costs of coverage

Property and casualty (P&C) insurers are feeling the pinch of inflation. The price of goods and services covered by personal insurance claims have been high for years, rising nearly 23 percent from June 2021 to June 2022. McKinsey senior partner Kia Javanmardian and coauthors explain that loss costs for personal auto lines rose 8.6 percent in the United States, while workers’ compensation lines increased by $4 billion, at 16 percent.

Inflation has had an adverse impact on most property and casualty lines of insurance, dampening favorable trends and accelerating unfavorable ones.
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To read the article, see “Countering inflation: How US P&C insurers can build resilience,” August 25, 2022.