Updated on 4.9.2025 at 4:00 pm ET
In times of economic uncertainty, consumers look for stability and guidance—creating a rare and critical opportunity for the insurance industry to step up and engage meaningfully amid unfolding tariff disputes. With the prospect of rising costs, market volatility, and supply chain disruptions, insurers must strategically position themselves to meet customer needs while reinforcing their value as reliable allies.
The Impact of Tariffs on Insurance Costs
Uncertainty surrounding the tariffs remains a concern, though President Trump’s 90-day delay on tariffs could postpone immediate effects on insurance. However, the 10% across-the-board duty remains, in addition to a bold 125% tariff imposed on one of the U.S.’s largest importers of goods, China. Markets responded positively at the news of Trump’s tariff delay, but volatility remains due to uncertainty surrounding what will happen next.
Tariffs could have a wide range of impacts on insurance. From increased car prices, auto parts, and building materials to larger economic issues stemming from a potential recession. Insurance brands should be proactively offering solutions that balance cost considerations with responsive service.
Strategies for Engaging Consumers During Economic Uncertainty
1. Maintain Clear and Transparent Communication
Consumers are likely to feel anxious about rising premiums and broader economic disruptions. Providing clear and transparent information about why costs are increasing—such as the direct impacts of tariffs—can help establish trust.
For example:
- Create customer-facing materials that explain how global supply chain disruptions are driving up repair costs and outline what your organization is doing to help mitigate those challenges.
- Send regular newsletters or updates sharing data-driven insights about how you’re working to protect customers with affordable insurance solutions.
Transparency and education are powerful tools that instill confidence and create room for productive conversations.
2. Demonstrate Empathy Through Customer Support
Uncertainty amplifies the need for empathetic customer service. Insurers should go beyond transactional interactions to foster a sense of care and understanding.
Practical steps include:
- Highlighting discounts and savings opportunities for customers struggling with rising costs. During the Covid pandemic, many brands returned a percentage of premiums due to the sudden drop in claims. While this situation is different, offering savings could present insurers in a positive light.
- Ensuring agents, claims associates, underwriters, and customer service representatives have the tools and messaging to respond effectively to customer concerns is critical. A proactive approach is key, along with preparing employees for the volatility of the situation and the need to adapt quickly to change.
- Tailoring outreach to address specific consumer needs, such as first-time homeowners impacted by rising mortgage and insurance costs or tenured customers who may experience a rate hike.
By addressing consumer pain points proactively, insurers can strengthen relationships and position themselves as indispensable partners during turbulent times.
3. Leverage Value-Added Services & Incentives
Value-added services can be a crucial differentiator in challenging markets. Offering features that go beyond standard policy coverage can demonstrate your commitment to customer success.
Consider:
- Telematics-based discounts for auto policies, encouraging safe driving while offsetting rising premiums.
- Home risk consultations, where policyholders receive complimentary assessments to mitigate potential risks and lower long-term costs.
- Community support initiatives, such as partnerships with local repair shops offering discounts for policyholders.
These additional benefits show customers that you are invested in their well-being, not just their business.
4. Highlight Longevity and Brand Reliability
This is the time to remind customers why they chose your brand in the first place. Highlight your history of reliability during past crises, whether it was the financial resilience shown during COVID-19 or examples of swift action during natural disasters.
For instance, insurers might develop marketing campaigns or share case studies showcasing how they assisted customers during moments of difficulty. By positioning their services as a consistent source of support, insurers can promote loyalty even amidst price volatility.
Why This Moment Matters
Moments of disruption—while difficult—present unique opportunities for insurers to prove their value. By aligning with consumer concerns, simplifying complex challenges, and taking proactive steps, insurers can secure loyalty and solidify their brand as a vital partner in times of uncertainty.
Several financial services brands have taken steps to advise and support consumers through this volatile moment. To provide reassurance, Acorns highlighted historical S&P returns, emphasizing long-term stability. Meanwhile, YieldStreet advocated for private markets as an effective hedge against stock market volatility. In each example, both brands looked to instill confidence in the consumer that it can help them navigate uncertainty, a tactic insurers could look to replicate since 42% of consumers are “very concerned” about the impact of tariffs.
Source: Comperemedia Omni [01/01/25 – 04/06/25] as of 04/07/25
To remain competitive, insurers should not just react to economic uncertainty but innovate solutions that meet emerging challenges head-on. Engagement strategies rooted in empathy, transparency, and value creation will ensure that customers see your organization as more than a service provider—they’ll see it as a trusted ally. However, tread carefully. Many brands are under scrutiny for how they’ve responded to rising tariffs. For insurance companies, it’s crucial to craft campaigns that are empathetic and genuinely aimed at supporting customers during challenging times.
Looking Ahead
The current volatile environment presents mixed outcomes. While anxieties are rising, the effects of tariffs are unlikely to be entirely positive or negative. Tariffs could boost U.S. jobs and manufacturing, creating new opportunities. However, they might also lead to higher prices, product shortages, or even a recession. While companies will make adjustments, much of the situation remains unpredictable. For now, businesses should focus on supporting customers through this uncertainty. Think of the current environment as a “COVID 2.0.” While not a health crisis, tariff wars bring a similar disruption that demands careful management. This is a chance for brands to show their value by helping customers navigate these challenges. Success depends on proving your company is the trusted partner they need to weather this storm.
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