Skip to main content
Marsh logo

Report

Updated guide: How inflation impacts insurance

Your one-stop guide to understanding the importance of accurately declared values and business interruption reviews

Get your copy now

Updated 24th October 2023
 

Widespread global volatility is impacting supply chains, labour costs and inflation, creating a perfect storm impacting asset and business interruption declared values across all industries.

In Australia, inflation grew at its fastest pace in 20 years between 2020 and 2022, reaching 7.8%. However, according to data published by the Australian Bureau of Statistics (ABS) on 26 July 2023, the annual inflation rate has since decreased to 7.0% in Q1 2023 and 6.0% in Q2 2023, indicating a trend towards easing. 

Accurate declared values have become a focal point for insurers, driven by concerns about declared values adequately capturing market movements as well as loss experiences in cases where loss amounts were well above reported values.

How inflation impacts insurance is your one-stop resource to understanding the importance of accurate valuation of assets and business interruption reviews. You’ll be provided with insights into the current inflationary landscape, its impact on insurance and steps you can take to bolster your risk management program. Get your copy now.

What you’ll learn:

1. The impact of inflation on declared asset values

Learn why valuations have become a major underwriting focus for insurers and the common mistakes to avoid when declaring them.

2. The many attributes that affect asset value
Find out about the many attributes that affect asset values and why no broad singular index can be applied.

3. The impact of volatility and uncertainty on business interruption values

Gain a deeper understanding of how Business Interruption is calculated and why insurers are demanding accuracy.

4. Factors influencing the calculation of accurate business interruption declared values

Discover the key aspects that go into making a forward-looking BI calculation.

5. How you can respond

Use our checklist to consider how you can undertake a robust approach to bolstering your risk management program in this inflationary environment.

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 23/460

“Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”