From rising claims costs and premium pressures in P&C insurance to budget tightening in Group Benefits, we’re seeing real implications for both insurers and employers. And the talent market? It’s shifting too.
As global trade tensions and protectionist policies rise, Canada is not immune to the effects of increased tariffs—particularly when applied to key trading partners. While the immediate impact is often seen in the cost of consumer goods or supply chain disruptions, the ripple effects reach deep into sectors like insurance, especially Property & Casualty (P&C) and Group Benefits. Beyond underwriting and claims, there are also notable implications for the insurance employment market.
Below, we break down five key ways increased tariffs could impact both the insurance industry and hiring landscape.
1. Rising Claims Costs
Tariffs increase the price of imported goods such as auto parts and building materials. This raises the cost of repairing or replacing insured assets, especially in auto and property claims. Higher claims costs squeeze margins for insurers.
2. Upward Pressure on Premiums
To offset the spike in loss costs, insurers may need to raise premiums across both personal and commercial lines. This can lead to customer dissatisfaction and higher churn, as clients shop around for more affordable options.
3. Changing Commercial Risk Profiles
Tariffs disrupt supply chains and impact the profitability of businesses involved in importing and exporting. These changes affect their risk exposure, requiring insurers to rethink how they underwrite and price commercial policies.
4. Group Benefits Cost Containment
As employers absorb higher input costs due to tariffs, many may look to reduce spending elsewhere—including on group benefits. This could lead to leaner plans, more cost-sharing with employees, or a shift toward value-driven benefits.
5. Increased Demand for Risk Advisory Services
With more economic uncertainty, businesses are seeking guidance from insurers and brokers to navigate emerging risks. This is a chance for insurance firms to offer deeper consultative services, such as supply chain risk assessments or alternative coverage structures.
Impacts on the Insurance Employment Market
1. Higher Demand for Technical Talent
Insurers are likely to increase hiring for roles in actuarial science, underwriting, and data analytics to model and adapt to the economic volatility tariffs bring. Those with an understanding of trade risk and economics will stand out.
2. Growth in Claims and Adjusting Roles
Claims departments may need more resources to handle increasingly complex and expensive claims. Professionals who understand international supply chains and valuation models will be especially valuable.
3. Cautious Hiring in Growth Areas
Insurers facing margin pressure may scale back hiring in expansion-focused roles such as business development, marketing, or new product launches. Recruitment activity could become more strategic and selective.
4. Surge in Benefits Consultants and Plan Designers
Organizations seeking to optimize their benefits offerings may turn to insurers and consulting firms for help. This will boost demand for group benefits experts who can creatively manage cost-containment while maintaining plan value.
5. Focus on Upskilling and Reskilling
With evolving client needs, insurance companies may invest in training current staff in areas like trade risk, geopolitical awareness, and supply chain exposure. Learning and development teams will play a key role in supporting internal mobility and capability-building.
Final Thoughts
Tariffs may not be the first thing that comes to mind when thinking about insurance, but they have far-reaching effects across coverage, pricing, and talent. For insurance firms and HR leaders alike, understanding these dynamics can help navigate what’s ahead turning economic pressure into a chance for innovation and adaptation.
Sources
- Canadian Chamber of Commerce – Impact of Trade Barriers on Canadian Businesses
- Insurance Bureau of Canada – Trends in Property & Casualty Insurance
- Conference Board of Canada – Economic Implications of Rising Protectionism
- Benefits Canada – How Economic Headwinds Affect Group Benefits Plans
- Deloitte – Global Insurance Industry Outlook 2024
