Are Claims Leaders Facing A Perfect Storm?

2022 is off to an exciting start: COVID-19 is waning. But the pandemic’s hangover looks to be long and fraught with surprises. Inflation has hit levels not seen since the 1980s.

Individuals and businesses saved much of the money given to them during the pandemic, and pent-up demand for goods and services is driving prices for almost everything higher.

Actual and perceived shortages of commodities, exacerbated by the war in Ukraine, have contributed, too. Investors reevaluate sky-high equity valuations as interest rates rise, and some markets have corrected more than 25%.

Corrections of this magnitude can become self-sustaining as highly leveraged investors sell more to meet margin calls. Time alone will tell how extensive the damage becomes.

Recent inflation, tight labor markets and economic volatility create a perfect storm for chief claims officers.