What inflation and rising prices mean for property damage insurance
TrendsWhitepaperOctober 24, 2023
Although inflation is generally falling, it is still having an effect on a number of industry sectors. So how much of an impact is it having on property and insurance? At Zurich, we have researched the figures to give you an insight into the current situation.
The general picture
Inflation is finally falling, as we are seeing lower prices for energy, goods and food. However, it may not be falling as fast as governments would like, as the costs of services are still rising at a rapid pace. The general picture reflects imbalances in the economy, where manufacturing and construction are under pressure while the services sector has been doing well, boosted by consumers’ desire to spend on leisure and travel following the pandemic and lock-down. While governments are seeing weaker inflation as good news, the level of inflation is still too high.
Annual inflation rate
| Country | Inflation Rate | Source |
|---|---|---|
| US | 3.2% as at July 2023 | U.S Bureau of Labor Statistics |
| UK | 6.4% as at July 2023 | Office for National Statistics |
| Eurozone | 5.3% as at July 2023 | Eurostat |
| Germany | 6.2% as at July 2023 | DESTATIS, Statistisches Bundesamt |
| Switzerland | 1.6% as at July 2023 | Federal Statistical Office |
Central banks have continued to focus on inflation, despite other challenges and concerns, and will take a more aggressive stance if inflation continues. We may see a pause in rate hikes in some regions, as central banks will take stock to monitor the effects of earlier rises.
What does this mean for our customers?
Download the Risk Insights document to learn more.
