Four piles of coins are arranged on a desk in front of a person's hands. The stacks of coins get taller from left to right. Since reinsurance rates sit below the surface of nearly every P&C policy, as reinsurers struggle with flagging profitability, their struggles promise to play an even bigger role in the cost of nearly every policy in the near- to medium-term. (Credit: sitthiphong/Adobe Stock)

Continuously rising inflation, paired with the subsequent rising interest rates used to combat that inflation, stands to have a strong impact on most lines of property and casualty insurance in the near- to medium-term.

The easy, short answer to how inflation will impact P&C insurers is that inflation increases the value of each loss, which leads to bigger payouts. Those payouts have to be recouped through higher premiums, leading to higher insurance costs across the board.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including, and
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.