As Americans approach the holiday season, rising financial caution is prompting many to reassess their insurance needs and risk management strategies.
Nationwide's 2025 Economic Impact Survey shows that while 55% of Americans feel secure with their personal finances, 42% plan to spend less this holiday season compared to last year. Consumers are also cutting back across discretionary categories, buying fewer luxury items, making fewer impulse purchases and increasingly opting for secondhand goods. Major life decisions, from vacations and car purchases to weddings and retirement, are also being postponed, and reliance on credit is growing.
These spending trends coincide with broader financial stress that extends beyond the holidays. Around one in five Americans report increased debt usage over the past year, carrying credit card balances, taking personal loans or borrowing from retirement accounts.
With 35% of Americans expecting the economy to worsen in 2026, concerns about inflation, global trade tensions, and market volatility are shaping financial priorities. Consumers are anticipating challenges in managing healthcare costs, debt repayment, and retirement savings.
The insurance market is responding to these trends. Insurtech Insights highlighted seasonal spikes in home insurance claims due to holiday lights, package theft and winter accidents, while online shoppers are increasingly considering shipping protection insurance.
Nationwide's survey shows that 46% of consumers turn to insurance agents for guidance, far more than friends, family, social media or AI tools. This reflects the enduring value of human expertise. Agents can help clients identify coverage gaps, recommend protective measures and provide reassurance in a time of financial uncertainty.
Reacting to the study, Nationwide’s SVP of personal lines sales and distribution, Michael Tripp, said that people need guidance that combines data with real-world protection tailored to family budgets.
Agents can strengthen client relationships by offering personalized policy reviews, suggesting preventive tools such as smart sensors, and proactively engaging clients during seasonal or economic shifts. In a market marked by cautious spending and rising financial anxiety, the human touch continues to be a key differentiator for insurers, reinforcing trust and long-term loyalty, the report noted.
