Trump administration, state law revisions change risk management

CHICAGO – Tariffs and federal agency funding changes brought in by the Trump administration have created some uncertainty for companies, but it’s too soon to foresee how they might play out, a panel of experts said.

However, efforts in various states to reform their civil justice systems are largely favorable for corporations and risk managers, they said Tuesday during a session at Riskworld, the Risk & Insurance Management Society Inc.’s annual conference.

A little over 100 days into President Trump’s second term, companies are seeing significant changes to the business environment, but it’s not yet clear what their lasting effect will be, said Andrew Levy, Chicago-based chief corporate and government affairs at Accenture PLC.

While significant tariffs were imposed on many countries and then quickly suspended on most of them, it remains to be seen whether the primary purpose of their implementation is to return manufacturing operations to the United States or to use as leverage in trade negotiations, he said.

“A lot of uncertainty remains,” Mr. Levy said. As a result, companies cannot yet determine issues such as where they should invest and where they should hire people.

Actions by the so-called Department of Government Efficiency could also affect companies and risk managers, said Deirdre Manna, Chicago-based senior vice president, head of government and regulatory relations, North America, at Zurich North America.

Reduced funding and staffing for the Federal Emergency Management Agency may change how disaster response measures are implemented, and cuts at the National Oceanic and Atmospheric Administration and the Occupational Safety and Health Administration may lead to changes in the provision of related data, especially for smaller insurers, she said.

At the state level, legislative changes have been implemented that are favorable to the risk management sector, Ms. Manna said.

Notably, laws passed in Florida in 2023, which targeted issues such as attorney fees, the statute of limitations, and bad faith claims against insurers, have already had an impact on the market, she said.

“There have been nine new property/casualty carriers writing in the state, a 20% decrease at Citizens, the insurer of last resort, and 60% of the top 10 carriers have expanded their writings in Florida,” she said.

Civil justice changes passed this year in Georgia, the culmination of a multiyear effort, should also improve the legal environment for companies in the state, Ms. Manna said. Louisiana is also considering various changes focused on property and auto exposures, she said.