Tariffs and Captive Insurance: A Risk Manager's Blind Spot?

A bird's-eye view of a container ship unloading cargo at a port

June 30, 2025 |

A bird's-eye view of a container ship unloading cargo at a port

As global trade tensions rise again, the reemergence of tariffs as a financial and political tool is forcing businesses to reevaluate supply chains, pricing models—and increasingly, their insurance strategies.

For captive insurers, tariffs may seem like an indirect concern. But their ripple effects go far beyond geopolitical headlines. From escalating claims costs due to higher replacement values to major swings in investment portfolios tied to market volatility, tariffs have the potential to materially impact both sides of the balance sheet.

Veteran financial adviser Jack Meskunas offers a timely reminder: "Time in the market beats timing the market"—especially when unpredictable policy changes can move equity and fixed-income values dramatically in a matter of days.

Captive owners, boards, and investment committees are well advised to understand how these market shifts intersect with their portfolios. One overlooked area? How tariff-driven inflation in replacement costs may affect policy pricing and claims adequacy in the months ahead.

Mr. Meskunas shares historical context, real-world investment examples, and his take on what captive stakeholders should be watching now—and why.

Read the full article in the July edition of Captive Insurance Company Reports.

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June 30, 2025