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Inflation to “sharply increase” hurricane claims costs, warns Swiss Re

June 21, 2021

Swiss Re has warned that insurance and reinsurance firms will face increased indemnity costs after land-falling hurricanes in the United States this year, as inflationary factors are set to drive claims amounts higher.

In summarising what to expect from the 2021 Atlantic hurricane season, according to the forecasts, Swiss Re also touches on what is a key issue for the industry this year.

Inflation is driving prices higher and while the insurance and reinsurance industry may have been hoping that claims inflation from litigious claims could be close to reducing, thanks to legislative efforts in Florida, there are other inflationary factors that are a cause for concern.

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