Some economists are forecasting a deepening recession in 2023. While there are varying measurements to determine what qualifies as a recession, the consensus is that rising interest rates and high inflation will continue to put the squeeze on Americans’ wallets in the new year.
As a byproduct of these economic conditions, there is a good chance that insurance companies will see an uptick in claims related to inflation and the heightened cost of living.
In risk control, we are planning to focus our efforts on risks related to the financial impact of a challenging economic climate.
In the coming year, I expect we will see an increase in fraud and opportunistic crimes as people become more financially desperate and criminals prey on that desperation.
People faced with bleak financial outlooks are not only more likely to turn to committing crimes for financial gain, but also are more likely to fall victim to scams that promise fast, easy cash.