Inflation is wreaking havoc in all major lines of P&C insurance, but its effects seem to be most acute in auto insurance, particularly auto physical damage, reports Aviva Canada CEO Jason Storah.
“The most acute impact we’ve seen so far in the P&C industry is on the auto side,” Storah told Canadian Underwriter during a conference call about the company’s 2022 half-year results.
“Auto physical damage inflation is running in the mid-to-high single digits. Bodily injury inflation is a lot lower. But we all know if you want to buy a new or a used car these days, it’s more expensive, and you’re going to wait an awful lot longer. I think everybody sees that [when] there’s supply chain pressure in the auto industry generally, that means there just isn’t the availability of cars.
“For us, that means not only are cars more expensive to fix or to replace, but it also…