Article
Tariffs and the insurance industry: Strategic impacts and actionable insights for insurance organizations
April 22, 2025 · Authored by John Romano
The tariff landscape is rapidly evolving and this information may become incomplete as changes are made. Tariffs are more than a cost-of-doing-business issue – they are reshaping how insurance carriers operate, serve customers and protect their portfolios. By strategically realigning your audit, cybersecurity, claims, compliance and pricing practices, you’ll be positioned to lead – not lag – through this next phase of economic disruption. For more information on these topics, or to learn how Baker Tilly’s insurance specialists can help, reach out to our team for up-to-date information.
As global trade policies evolve, their ripple effects are no longer confined to supply chain or import-dependent industries. Tariffs on vehicles, parts and building materials are now directly increasing claim costs across personal and commercial lines of insurance – most notably in auto and homeowners coverage. For insurance organizations, this shift demands more than observation – it calls for recalibrating internal processes, pricing models, vendor strategies and risk management frameworks. Below you will find a breakdown of the impact of tariffs on the insurance industry and key actions to take to combat the major impacts they may have on your organization.
What the data tells us: Tariffs are driving claims inflation
Recent tariff announcements have led to real, measurable and forecasted impacts across the insurance value chain:
Auto insurance claim costs
