RPICPI User Group

last person joined: 3 months ago 

To foster co-operation and the exchange of information between the ONS, its advisory bodies and other users. Please see 'Aims of the RPI/CPI User Group' in the library for further details.

The Treatment of Property-Casualty Insurance in Consumer Price IndiceThe Treatment of Property-Casualty Insurance in Consumer Price Indices

  • 1.  The Treatment of Property-Casualty Insurance in Consumer Price IndiceThe Treatment of Property-Casualty Insurance in Consumer Price Indices

    Posted 04-06-2018 17:38

    Dear all:

    I have added a file to the library, my PowerPoint slides for my presentation on "The Treatment of Property-Casualty Insurance in Consumer Price Indexes" at this year's annual meeting of the Canadian Economics Association.

    The paper itself can be found on the CEA website:

    https://economics.ca/2018/papers/BA0017-1.pdf

    I was grateful for the paper by Helen Sands on the UK HCIs as it provides a comparison of basket shares for components of insurance services in a consumer price aggregate based on the gross premiums and net premiums approach, which doesn't exist for Canada or for any other country I am aware of.

    I plan to add a variant of my paper to the library that would be more focused on the needs of the UK and that would use British rather than Canadian terminology but will probably not be able to do so before July. If there are mistakes in my paper (I have already noticed a few) I still have some time to correct them online, and would appreciate feedback from members.

    I won't be able to attend the meeting on the future of the RPI, but would point out that even though the RPI was created as a household-oriented index, the Bank of England used RPIX as a macroeconomic index. The RPI for all items excluding mortgage interest payments and council tax adjusted for the formula effect would arguably, be a better monthly macroeconomic index than the UK CPI. What seemed like one of its defects, the use of a gross premiums approach to measuring insurance services, would now, as my paper argues, seem to be one of its advantages.

    Best regards,

    Andrew