London Market Monitor – 31 August 2022
Our August review of the markets and Solvency II discount rates.
The recent change in the inflationary regime has been rapid and rather brutal. Economies that have grown used to 1% to 2% annual inflation are now looking at rates approaching – or in – double digits. The implications of the recent increases depend significantly on the path of inflation rates from here. In this paper, we discuss:
History repeating itself? The return of high inflation and its implications (including modelling) for life insurers
Current inflation rates are likely to be the highest seen for a generation, and the ensuing effects could have a profound impact on life insurers.