The latest government Consumer Price Index figures show increases for components that impact accident, auto and home claims, the Insurance Information Institute said.
Steven Weisbart, I.I.I. senior vice president and chief economist, said the February Bureau of Labor inflation report might concern insurers' claims managers.
He noted that even though the overall CPI was up just 0.2 percent over February 2008, "some components that have particular application to claims are up significantly more for that period."
Mr. Weisbart cited the fact hospital services rose 6.2 percent over the 12-month period ending in February and motor vehicle body work was up 4 percent for the period.
Materials and components for construction (technically, part of the Producer Price Index–measuring wholesale prices–and not the CPI) was up 4.7 percent.
Mr. Weisbart mentioned that home insurers and commercial property insurers may want to take notice that the price of wafer board and oriented strand board rose 23.9 percent from February 2008.
This increase in building material, he said, is recent since the item rose only 5.3 percent for the 2008 calendar year.
Other items that have gone up are heating equipment, 8.6 percent; concrete products, 4.8 percent; insulation materials, 1.7 percent; and brick and clay tile, 0.4 percent.
There have been some decreases: lumber and wood products declined 3.4 percent and plywood 4.7 percent.
The full report is available online in spreadsheet format at the I.I.I. Members Web site at www.iii.org/members.
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