Economic insights : inflation may be easing, but claims severity pressures in P&C to remain

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      <subfield code="a">We estimate headline inflation to decline but stay elevated in 2023, to some extent alleviating upward pressure on claims compared to 2022. However, cost inflation in certain prices, such as labour and healthcare, may remain high. These, and noneconomic factors like social inflation and more frequent traffic accidents, will likely underpin still-elevated claims, notably in motor and liability. This environment will require P&C insurers to consider continuing underwriting discipline in 2023</subfield>
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