How is trade protectionism affecting insurance?

How is trade protectionism affecting insurance? | Insurance Business

How is trade protectionism affecting insurance?

Sasha Sanyal- Business leader, insurance -Genpact

“While certain types of insurance, such as marine cargo or business interruption insurance, will be impacted by a growing lack of cross-border collaboration and supply chain disruptions, overall property & casualty needs are likely to remain steady.

It’s not the need for insurance that will change with protectionism, just the complexities of how to manage levels of asset ownership and coverage as government policies continue to evolve at a fast clip. Artificial intelligence and predictive analytics can play a key role in helping insurance companies manage these complexities, helping their clients get ahead of shifting coverage level needs.”

Dan North -Chief economist -Euler Hermes North America

“In business surveys, respondents have consistently identified tariffs as a drag on business and an increased cost. Importers must pay the tariffs and either cut their margins and lose profits, or pass them on to customers, who may then go elsewhere. In either case, companies are facing increased financial distress. Payments on outstanding receivables have slowed dramatically, and bankruptcies have resulted in losses to businesses.

As a result, trade credit insurers face a sharp increase in claims. Trade protectionism and tariffs may shield a small number of jobs, but they usually create more losses for businesses and those who insure them.”

Ayleen Frete- Regional head of multinational, RUL and Benelux- Allianz Global Corporate & Specialty

“Protectionist measures may raise tariffs for cross-border financial services, including insurance, but many non-tariff measures already in place restrict the establishment of foreign companies or limit the license of trading certain insurance products.

Multinational insurers are therefore already accustomed to thoroughly considering the different regulatory complexities worldwide, whether in emerging or established markets. Global insurers are able to adapt to these requirements accordingly to provide solutions to global clients, or to develop new products with agreements locally, to overcome constraints on certain types of insurance. Uncertainty is our core business.”