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01 August, 2022

ESKA Watch: Sky-High Inflation Tests Global Insurers

By: Ahmad Sweiss

Economists speculate whether soaring consumer prices could still provide insurers with a silver lining as policymakers rush to counter record inflation and safeguard price stability over economic growth.

These are challenging times for the insurance and other growth-driving industries, heavily weighed by the pandemic aftermath, the war in Ukraine, and the surge in commodity prices amid growing fears of supply disruptions. Meanwhile, insurers are closely monitoring the related inflationary pressures, with headline inflation, the Consumer price index (CPI), hovering around its highest level in four decades. Simultaneously, markets are eyeing world central banks, expected to wave their magic wands against the inflation crisis before it takes an immense toll on the global economy. Still, we doubt that casting more counter-inflation spells will be as enchanting as in the old days. Only time will tell if it does!

In this article, we explore the correlation between inflation and insurance, the effect of inflationary pressures on claims and premiums, and how monetary policy decisions could influence the outlook of this resilient industry.

About ESKADENIA Software

ESKADENIA® Software is a three-time MENA Award Winner & CMMI® level 3 certified company that is active in the design, development and deployment of a range of software products in the Telecom, Insurance, Enterprise, Education, Healthcare, and Internet application areas. The company is based in Jordan and has sales activities in Europe, the Middle East and Africa; more than 85% of its sales are exported to the global market. For more information, visit www.eskadenia.com, or contact us at pr@eskadenia.com.