Insurers’ profitability to suffer due to increased trade tariffs announced in the US
A new report from GlobalData says that the general insurance sector in North America will grow at a compound annual growth rate of 6.7% between 2025 and 2029.
Thus, the sector’s total premium income will increase from $2.7 trillion in 2025 to $3.5 trillion in 2029.
The UkrStrakhuvannya online resource learns from the GlobalData report that, in the context of increased trade tariffs announced by the new US administration, insurers in the North American region may face an increase in claims settlement costs in 2025, which may affect their profitability.
“Property and motor insurance claims in the North America region are expected to account for 13.4% and 16.1% of total general insurance claims in 2025, respectively. However, the full and effective implementation of tariff rates could lead to an even greater increase in actual claims. Consequently, the profitability of the North American general insurance sector is expected to be significantly disrupted, with claims growth forecast to increase by 6.9% in 2025 from 3.3% in 2024,” the report said.