As the United States politically veers to the right with the inauguration of Donald Trump as president, a Republican-controlled Congress and a majority of Republican governorships, the economic impact of his policies on the property/casualty insurance industry are in sharp focus.
Executive Summary
P/C insurance industry leaders, analysts and academics, asked to assess the impact of the Trump presidency on the industry, projected growth on top and bottom lines in interviews that took place in advance of the inauguration. Here, they examine impacts related to repeal of Obamacare and reduced corporate taxes. In Part 2, the commenters discuss the impacts of infrastructure investments and regulatory changes.We reached out to several industry leaders, analysts and academics to assess this impact and how it may play out in coming years. By and large, their comments were highly positive. Candidate Trump’s emphasis on infrastructure building, lower corporate and capital gains taxes, the repeal and replacement of the Affordable Care Act, reforms to the Dodd-Frank Act and less regulation overall bode well for the industry’s growth prospects.
While the interviewees expressed some concern about the new president’s stance on trade protectionism, given the need for insurers to spread risk via the global reinsurance markets, and questioned his resolve to maintain state insurance regulation, overall they are bullish on his policy plans.
