Source page: McKinsey & Company
Commentary
Creeping costs of coverage
Inflation | Economy
October 25, 2022 – Property and casualty (P&C) insurers are feeling the pinch of inflation. The price of goods and services covered by personal insurance claims have been high for years, rising nearly 23 percent from June 2021 to June 2022. McKinsey senior partner Kia Javanmardian and coauthors explain that loss costs for personal auto lines rose 8.6 percent in the United States, while workers’ compensation lines increased by $4 billion, at 16 percent.
To read the article, see “Countering inflation: How US P&C insurers can build resilience,” August 25, 2022.
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Visual form
Insurance-lines inflation chart.
Layout / body structure
The chart is arranged as a line-of-business comparison, with the reader moving across property and casualty insurance lines to see how inflation is affecting each one differently. The reading order is from the broad inflation backdrop into line-specific cost pressure.
What is being compared
It compares the inflation impact across property and casualty insurance lines, including personal auto and workers’ compensation, and links those changes to loss-cost pressure.
Measurement system
The page uses percentages for inflation and line-specific loss-cost changes, so the viewer tracks how fast covered goods and services are becoming more expensive and how those increases show up in claims costs.
Visible structure inside the graphic
The internal pieces are the insurance-line labels and the corresponding rate-of-change bars or markers. The chart is structured to show which lines are seeing favorable trends weaken and unfavorable trends accelerate.
Main takeaway from the visual
The page shows that inflation is not a background issue for P&C insurers; it is already changing claim economics across most lines. The comparative layout makes the breadth of the pressure visible.
Key standout values or extremes
The page notes that covered goods and services rose nearly 23 percent from June 2021 to June 2022, that loss costs for personal auto lines rose 8.6 percent in the United States, and that workers’ compensation lines increased by 6 percent.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.