0
Inflation is rise in price of commodities in the economy. Inflation takes away the spending capacity from a consumer in an economy. As such premium must be paid during the initial period. However when people are facing a hard time fulfilling their basic needs such as rations how can we expect people to pay premium? Premium is paid to insure themselves from risk. But context here is different. People will be facing tough situation and encountering sky-rocketting price meaning spending power of consumer will decrease. So there will be decrease in number of insured around the world if the inflation hit hard.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
How will inflation affect hospitality industry in Nigeria?
how does inflation affect hospitality in nigeria industry
What impact does inflation have on the monetary unit assumption?
Inflation has a lot of impact on monetary unit assumption. Inflation greatly reduces the value of a monetary unit and acts as a hidden tax on consumers.
How does inflation affect the airline industry?
Inflation affects the airline industry in a negative ways The increase in the prices does not help the business as the purchasing value of money is usually decreased which causes huge losses to the industry.
Impact marine insurance on an economy?
Impact marine insurance on an economy?
How would the inflation rate affect the hotel and restaurant industry in the Philippines?
The behavior (rise or fall) of the inflation rate directly affects consumer spending, and indirectly the hotel and restaurant industry.
How will inflation affect hospitality industry in Nigeria?
how does inflation affect hospitality in nigeria industry
Impact of inflation on society's consumer and buyer?
Impact of inflation on society's consumer and buyer?
Can an insurance company charge inflation rates?
Insurance company have premium rates, Not inflation rates.
What has the author Jerome A Deichert written?
Jerome A. Deichert has written: 'The economic impact of the Nebraska insurance industry' -- subject(s): Insurance
What impact does inflation have on the monetary unit assumption?
Inflation has a lot of impact on monetary unit assumption. Inflation greatly reduces the value of a monetary unit and acts as a hidden tax on consumers.
How does inflation affect the airline industry?
Inflation affects the airline industry in a negative ways The increase in the prices does not help the business as the purchasing value of money is usually decreased which causes huge losses to the industry.
Impact marine insurance on an economy?
Impact marine insurance on an economy?
How would the inflation rate affect the hotel and restaurant industry in the Philippines?
The behavior (rise or fall) of the inflation rate directly affects consumer spending, and indirectly the hotel and restaurant industry.
Comprehensive Life Insurance Analysis?
Comprehensive Life Insurance Analysis How much life insurance do you need? This comprehensive life insurance calculator includes detailed net worth analysis, budgeting and college savings to help you decide how much life insurance you might need. You can also adjust the inflation rate and your expected rate of return to see how these variables can impact your insurance needs.
What are the impact of object oriented on software industry?
what are the impact object oriented on software industry
Why does medigap insurance rates raise yearly?
cost of inflation
Demand and supply in relation to the construction industry?
what are the counter measures for inflation?
