Inflation has changed from a potential problem for the U.S. economy to an embedded feature of the current operationg environment. This creates a situation unfamiliar to most insurance company management teams: there are a few industry executives who were in leadership roles the last time inflation reached abpove the 7% level. Elevated and persistent inflation creates an array of issues, unfamiliar situations, and unexpected dynamics that must be managed, with implications for pricing, reserving, and investment management.