As a kind of inevitable economic phenomenon, inflation has a certain impact on the development of the financial industry. Insurance as the pillar of the financial industry, also be affected by inflation in many aspects. For property insurance, inflation will bring higher claims costs and uncertainty of business. Thus, reduce the profits of company. For the relationship between inflation and the profits of property insurance companies, this paper uses The DuPont System to measure the profits of property insurance companies and The Distributed Lag Model to research their relationship. At last, we put forward policy recommendations on how to strengthen the profitability of insurance company on the sight of government and company.
