Triple-I Economist Available to Discuss Potential Insurance Implications from Tariffs

Media Contact:
New York Press Office
Loretta Worters
917-208-8842
lorettaw@iii.org

MALVERN, Pa., April 17, 2025 – Tariff uncertainty may impact the U.S. property/casualty (P/C) insurance industry, potentially leading to increased costs, economic volatility and changes in underwriting practices. Insurers may face challenges in managing risk, particularly with potential disruptions to supply chains and ultimately replacement costs, according to Dr. Michel Léonard, chief economist and data scientist at the Insurance Information Institute (Triple-I).

Léonard can address how different tariff scenarios may impact the insurance industry and whether tariffed goods remain economically viable. If not, what are the alternatives and at what price? Should insurers be concerned about tariff evasion?

Léonard can also discuss three types of P/C replacement cost scenarios given different tariff ranges:

• Single-digit tariff, while inventories last, higher prices below that tariff's rate.
• Single-digit tariff on goods that are still economically viable post-tariffs, higher prices up to the tariff's rate.
• Single and double-digit tariffs on goods that are no longer economically viable, a multiple of the pre-tariff price for tariff-evading goods.

"While there is no crystal ball for predicting the future, careful risk underwriting and effective risk management indicate the importance of using various scenarios and wider price ranges for different tariff levels,” said Léonard. “The more accurately a tariff rate is set, the greater the effect on actual increases in insurance prices.”

About the Insurance Information Institute (Triple-I)
Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets. Brokers, agents, consultants, educators and other insurance industry professionals are among Triple-I’s associate members.

About The Institutes
The Institutes are a global not-for-profit comprising diverse affiliates that educate, elevate and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes’ nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting and preventing losses to create a more resilient world.