• Social Inflation: Rising Tides in the Insurance Markets

      Heim, Noah (2021-12)
      Social inflation, despite its relative recency, has been a strong concern for some of the largest insurance carriers in the world. With claims costs increasing across broad markets, especially in casualty markets, insurers are racing to find the reason why. Increased claims costs can result in a number of negative effects on both insurance carriers as well as insurances buyers. Social inflation seems to be a key driver of these increased costs. Doing a deep dive into the validity of this claim and studying some potential causes as well as markets in which social inflation is occurring has led to the discovery of some significant effects on the insurance marketplace as well as some potential solutions to help curb the problem and move past this issue.