Ep. 97: Inflation and Reinsurance - a Better Way

Cents and Sensibility: the Inflation Guy Podcast

Content provided by Michael Ashton - the Inflation Guy. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Michael Ashton - the Inflation Guy or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

4M ago 29:46

MP3•Episode home

The Inflation Guy sometimes gets distracted by shiny things. Today, he was distracted by an article sent from a listener, detailing comments from the CFO of Travelers Insurance about the increased reinsurance the company is employing as a hedge against inflation risks to its property and casualty (P&C) businesses.

This is an illuminating comment, showing both that (a) insurance costs are going up not just because insured property values are rising, but also because the cost of reinsuring is rising as inflation risks rise; and (b) major insurance companies are still not hedging inflation risk in P&C businesses with inflation hedges but rather through increasing reinsurance coverage. That's inefficient, and the Inflation Guy explains why.

Insurance and inflation! What could be more interesting than combining those two exciting topics?

NOTES

Article: Inflation on insured values main reason for Travelers extra reinsurance protection, says CFO

Blog Post: Inflation Sherpa

To Subscribe to Quarterly Inflation Outlook: https://inflationguy.blog/shop/

To Subscribe for free to the blog: https://inflationguy.blog/

Check out the website!: https://www.EnduringInvestments.com/

100 episodes

#Trading #Business #Michael Ashton - the Inflation Guy