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 latest tariff announcements affecting insurers 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
- A 25% tariff on imported vehicles and auto parts could increase U.S. auto insurance claims by $7 billion to $24 billion annually, according to the American Property Casualty Insurance Association (APCIA).
