
Uncertainty spawned by the debt ceiling debate will likely exacerbate the replacement cost inflation that has been putting upward pressure on property/casualty insurers’ loss ratios -- and, ultimately, consumers’ premium rates, according to Triple-I’s chief economist.
‘Whether or not we go to five, 10, 20 days -- or if we don’t have a shutdown at all -- this signals to the market a dysfunction in terms of government operations,’ said Dr. Michel Léonard, Triple-I chief economist and data scientist in an interview with Triple-I CEO Sean Kevelighan. ‘That leads to higher interest rates…which fuels inflation and reduces growth.’