The inflationary environment in the U.S. has been relatively benign since the early 1980’s. However, many see leading indicators in the economy that raise the specter of increased risk of inflation in the future. This session will discuss the economic background and potential risks. A look back to the inflationary periods of the 1970’s and early 1980’s will be reviewed, and the implications regarding risk to current property/casualty insurance balance sheets and income statements. Actuarial approaches to deal with inflation risk will be discussed, as well as overall hedges companies can consider if they consider the risk of inflation to be a serious threat.