More broadly, the cost for many auto parts has been increasing due to supply-chain disruptions during the pandemic. The shortage in auto parts and the decrease in production of new vehicles are increasing the demand and costs for rental cars. These higher prices are therefore increasing claims costs for auto insurers. (Credit: oobqoo/Adobe Stock) More broadly, the cost for many auto parts has been increasing due to supply-chain disruptions during the pandemic. The shortage in auto parts and the decrease in production of new vehicles are increasing the demand and costs for rental cars. These higher prices are therefore increasing claims costs for auto insurers. (Credit: oobqoo/Adobe Stock)

According to the Labor Department, the U.S. is experiencing the largest increase in consumer prices since the height of the global financial crisis in September 2008. At the same time, the insurance industry is experiencing exacerbated inflationary pressures in homeowners and auto insurance lines, stemming from rapidly increasing prices associated with consumer goods and services that are relevant to the industry.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Coverage & Policy Issues
Education & Training
Personal Lines
Emerging Risk