12 min
Claims inflation | Catastrophic Injury & Large Loss Clyde & Co | Casualty
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- Business
The impact of claims inflation is particularly acute in the Catastrophic Injury and Large Loss arena. Even relatively small movements in inflation, salaries, goods and services can bring large outputs in damages when a compensation package is required to meet a claimant's needs for the remainder of their life.
The last 12 months has seen increasing inflation coupled with a worsening economic outlook. Salaries have risen in response to the cost-of-living crisis, industrial action, and increased competition from employee shortages brought about the day by the 'Great Resignation'. Supply chain issues due to Brexit, the Suez Canal blockage and war in Ukraine have caused increase in cost of goods and materials.
The impact of claims inflation is particularly acute in the Catastrophic Injury and Large Loss arena. Even relatively small movements in inflation, salaries, goods and services can bring large outputs in damages when a compensation package is required to meet a claimant's needs for the remainder of their life.
The last 12 months has seen increasing inflation coupled with a worsening economic outlook. Salaries have risen in response to the cost-of-living crisis, industrial action, and increased competition from employee shortages brought about the day by the 'Great Resignation'. Supply chain issues due to Brexit, the Suez Canal blockage and war in Ukraine have caused increase in cost of goods and materials.
12 min