Swiss Re sigma series Global Executive Dialogue - World insurance: inflation risks front and centre

The world economy is undergoing paradigm shifts that will have profound long-term policy implications. Global economic growth is set to slow sharply and inflation rates are at multi-decade highs.

In its latest sigma 4/2022 - World insurance: Inflation risks front and centre, Swiss Re Institute forecasts "inflationary recessions" in many major economies over the next 12-18 months.

This challenging economic period will weigh heavily on insurance markets too. Slowing growth typically leads to lower demand for insurance, whilst the main inflation impact will show in rising claims costs. To counter the negative impact on profitability, insurers need to understand the drivers of inflation in order to plan against immediate balance sheet impacts and future pricing adequacy, capital requirements and reserve setting.

In the upcoming virtual Global Executive Dialogue, Andreas Berger, Swiss Re Corporate Solutions' Chief Executive Officer and Swiss Re's Group Chief Economist Jerome Jean Haegeli will explore the findings from our latest sigma research and the impact of inflation on the insurance industry, how to quantify exposure and how to manage it.