For property-casualty insurers, losses are higher for lines that are exposed to

Question

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Lines with long tails (i.e. where claims can be reported years after the policy period) and high inflation (which can inflate the cost of claims) tend to have higher losses for property-casualty insurers. This is because the insurer may need to pay out a claim many years after the policy period, and the cost of that claim (such as medical expenses or legal fees) may be much higher due to inflation.

For Property-Casualty Insurers, Losses Are Higher for Lines That Are