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Insurance Nerds Announce NEW Video Series From Dr. Mark Tarmann Jr!
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Nicholas Lamparelli
:
Oct 6, 2025 11:48:17 AM
The insurance industry is facing a transformative challenge as new tariff policies reshape the landscape of claims management and risk assessment. A recent whitepaper from Adjusto reveals critical insights that every insurance professional should consider in their strategic planning for 2026 and beyond.
While many industries are grappling with tariff impacts, the insurance sector faces a unique challenge: the multiplier effect on claims severity. The U.S. government's implementation of a 10% universal tariff has catalyzed a dramatic shift, pushing the average effective rate from 2.2% to 9% in just six months. For insurance professionals, this isn't just a statistical change...it's a fundamental restructuring of claims economics.
The most significant impacts are appearing in categories that traditionally dominate property claims:
One of the most insidious aspects of the current tariff regime is the timing risk. Claims professionals are finding themselves caught between initial valuations and final replacement costs, as prices continue to drift upward during the claims process. This creates a perfect storm for customer dissatisfaction and increased disputes.
Embrace Technology Integration
Insurance professionals must leverage AI-powered pricing engines and digital verification systems to stay ahead of price volatility. Real-time pricing data isn't just a convenience – it's becoming a necessity for accurate claims handling.
Revise Risk Assessment Models
The traditional approach to risk assessment needs updating. Insurance professionals should:
The industry consensus is clear: tariffs are not a temporary phenomenon but a structural change requiring strategic adaptation. Insurance professionals need to position themselves at the forefront of this change by:
As Robert Hartwig from USC notes, "Import taxes will unquestionably raise claim severities across all auto and property lines"
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