Munich Re warns over inflation in severe bodily injury claims

Munich Re is warning against the growing risk of inflation for severe bodily injury claims due to rising costs in the healthcare sector. Ludger Arnoldussen, member of Munich Re’s Board of Management, said “The huge increase in long-term care costs in particular is leading to inflation in severe bodily injury claims. In the past, this has been underestimated.” The industry needs to pay more attention to appropriate reserving in this field in the future. Arnoldussen also stressed that Munich Re would be addressing this topic in the renewals.