Tariffs and Their Effect on Insurance
By Sam Hanmer, Rush Insurance
Published In Longmeadow Neighbors | September 2025
Tariffs might seem like something only economists argue about on cable news, but they can stir things up in the insurance world. Tariffs don’t rewrite policies or fine print directly, but they can throw a wrench into how insurers figure out pricing, handle claims, and manage all the moving parts of their business.
Take the rising cost of goods and services. When tariffs make it more expensive to bring in steel, lumber, or car parts from overseas, the price tag on fixing a roof or repairing a fender bender climbs right along with it. Insurers notice that, and before long, you might notice your homeowners or auto premium creeping up too.
Tariffs can also impact supply chains. When businesses can’t get what they need on time—or at all—it can shut things down or slow them up. That could equate to lost revenues and lost clients creating untold stress on the business’s operation potentially leading to layoffs and/or closures.
Sam Hanmer
HOME & AUTO INSURANCE
Rush Insurance
413-532-3291
rush-insurance.com
shanmer@rush-insurance.com
For insurers that operate globally, tariffs are more than a nuisance—they’re a signal. Trade tensions and political friction can change the game in overseas markets, so you’ll see more attention paid to political risk coverage and careful shifting of their international exposure.
And let’s not forget the investment side of things. Insurance companies aren’t just in the business of collecting premiums—they invest those dollars, too. If tariffs cause the stock market to wobble or push down bond yields, that can chip away at an insurer’s returns and put pressure on their bottom line.
At the end of the day, tariffs are just one of many forces that shape the world insurers have to navigate. They may not grab headlines in the insurance trade journals, but they do matter—especially when it comes to keeping coverage affordable and companies on solid financial footing.
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