We’ve entered an inflationary environment, and a significant one at that. The Consumer Price Index (CPI), which has been slowly inching upward since May 2020, increased 0.9 percent from September to October while also reaching its largest year-over-year hike—6.2 percent—since 1990.
Inflation has a larger impact on the insurance industry than most others. However, inflation doesn’t affect all areas of the insurance industry in the same way. Insurance carriers typically suffer during inflationary periods while insurance distributors do well.