Inflation Paper

Inflation fears became reality during 2022. In the beginning of 2022 consumer prices climbed at their fastest pace in decades. With inflation hitting multi-decade highs, major central banks have become increasingly hawkish, and are rapidly raising policy rates while shrinking their balance sheets.

This is on one hand leading to negative fixed income returns through rising yields and on the other hand leaving investment managers with the challenge to find alternatives and hedges to navigate this high inflation.

Insurers have a wide range of options to mitigate the challenges posed by elevated or rising inflation.