A stealth inflationary cost is hitting corporate profits and consumer wallets
A stealth inflationary cost is biting into corporate profits.

While some companies are now seeing lower input and freight costs, one expense is not falling: insurance.

In its earnings report Friday morning, Dow component Travelers said insurance premiums that it charges are still soaring. Premiums on business policies jumped 14% in the last quarter. Consumers are feeling the pinch, too. Homeowner renewal premiums spiked 21%, while those for auto policies jumped 17%.

Those higher prices aren't deterring demand, though. The insurer noted "retention remained historically high" and "new business increased significantly."

Although rising premiums are good news for insurance firms such as Travelers, they are bad news for customers — whether they are individuals or companies.