Impact of Trump Tariffs on Global Insurance Industry

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

While insurers are enjoying a positive outlook due to rising investment income, Swiss Re's Chief Economist, Jerome Haegeli, warns that the imposition of tariffs could decelerate global GDP growth, subsequently impacting insurance demand. In the long run, US tariffs may lead to increased market fragmentation, potentially lowering the affordability and availability of insurance, which could harm global risk resilience.

In the context of Australia, the report foresees profitability growth, primarily led by improvements in underwriting results. Return on equity for Australia, along with six other advanced economies, including France, Germany, Italy, Japan, the UK, and the US, is projected to climb to 9.7% this year, maintaining stability through 2027. This outlook is supported by stable underwriting and enhanced investment outcomes.

Despite facing potential headwinds from tariff-induced growth slowdowns and financial market volatility, the insurance industry is expected to remain profitable. However, the immediate future for advanced markets indicates a significant deceleration in premium growth due to weakening price strength.

In Australia specifically, the property and casualty market reported reaching a premium volume of $98.38 billion last year, a jump from $89.5 billion in 2023. Although the report refrains from predicting the country's premium growth, it anticipates a moderation to 2.1% this year across developed Asia-Pacific economies, down from 2.9% in 2024.

The global non-life insurance sector is witnessing a slowdown in premium growth driven by softer pricing and policy-related uncertainties affecting economic momentum. A real growth rate of 2.6% in premiums is forecasted for this year, which is a decline from last year's 4.7% increase. Nevertheless, improved reinvestment yields are expected to bolster profitability.

Published:Friday, 11th Jul 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Health Insurance Premiums to Rise by 4.41% in 2026

11 Apr 2026: Paige Estritori

The Australian government has approved a 4.41% increase in health insurance premiums, set to take effect in 2026. This adjustment reflects the rising costs associated with healthcare services and the need to maintain the sustainability of the health insurance sector. - read more

Australian Insurers Address Premium Affordability Challenges

11 Apr 2026: Paige Estritori

The Australian insurance sector is currently grappling with significant challenges, notably the affordability of premiums for consumers. A recent survey by Gallagher Bassett highlights that premium affordability, cybersecurity, and labour shortages are the top concerns for insurers in 2026. ([insurancenews.com.au](https://www.insurancenews.com.au/daily/industry-reshapes-priorities-amid-price-cost-pressures?utm_source=openai)) - read more

Declining Commercial Insurance Rates in Australia

11 Apr 2026: Paige Estritori

The Australian commercial insurance market is witnessing a notable decline in rates, driven by intensified competition and an increase in insurer capacity. According to reports from global brokers Marsh and Aon, the Pacific region experienced a 12% reduction in commercial insurance rates during the last quarter of 2025, marking the most significant drop since early 2024. ([insurancenews.com.au](https://www.insurancenews.com.au/local/commercial-pricing-tipped-to-stay-soft?utm_source=openai)) - read more

Impact of Hailstorm Claims on Australian Insurers' Profits

11 Apr 2026: Paige Estritori

The Australian insurance industry has recently faced a substantial decline in profits, primarily due to a series of severe hailstorms that occurred in October and November 2025. Data from the Australian Prudential Regulation Authority (APRA) reveals that the general insurance sector reported a net profit of $132 million in the December quarter, bringing the annual total to approximately $5.8 billion. This marks a decrease from the $6.8 billion profit recorded in 2024. ([insurancenews.com.au](https://www.insurancenews.com.au/local/industry-profit-sinks-as-hail-hits-home?utm_source=openai)) - read more

Mandatory Professional Indemnity Insurance for NSW Builders by 2026

11 Apr 2026: Paige Estritori

Registered building practitioners in New South Wales are facing a critical deadline to secure professional indemnity (PI) insurance by July 1, 2026, in accordance with the Design and Building Practitioners Act 2021. This legislation, which originally set a 2025 enforcement date, has been extended by 12 months to allow the industry additional time for preparation. - read more

Click for more Insurance News