Social inflation demands resilient responses and attention for investment teams

Social inflation featured heavily in the industry in 2024 – what do investment teams at insurers need to be aware of in 2025?

Social Inflation Risk @Pixabay.
Social inflation means risk for investment teams at insurers in the current era.

Social inflation is a term that has gained increasingly common currency among insurers as they seek to explain why claims costs often out-run general inflation.

In December 2024, Jim Kaniclides, Head of US Insurance, Insight Investment, told Insurance Investor that it “has been a significant driver of claims costs and is likely to persist”.

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