How Tariffs Could Impact Tech in Independent Insurance Agencies

Tariffs aren’t just about steel and smartphones. They can hit insurance tech too, indirectly, but meaningfully. From pricing pressure to vendor slowdowns, ripple effects are real.

We asked Catalyit Solution Providers how tariffs could affect their tech and your agency.

Here’s what they said.

1. Minimal Impact (for Now)

Most providers aren’t feeling it—yet.

💬 “We’re a services business…no operational impact.”

— Mike Alexander, Live Oak IT Partners

💬 “No anticipated impact.”

— Brent Sheppard, Xanatek

But others are keeping an eye on upstream partners:

💬 “Microsoft, Databank—if their hardware supply gets hit, we’ll feel it.”

— Unnamed Provider

💬 “Our global delivery center is offshore. Tariffs = risk.”

— Mark Rogers, vBots Intelligent Assistant

2. Currency Crunch

A weaker dollar = more expensive global teams.

💬 “Paying engineers abroad in local currencies is costing more.”

— Peter Germanov, Momentum AMP

3. Impact on Agencies & Clients

Even if your tech isn’t hit—your clients might be.

💬 “Small businesses are seeing tighter margins. That could affect coverage decisions.”

— Peter Germanov, Momentum AMP

💬 “Cost pressure = less investment in tech.”

— Steve Forte, Patra

💬 “Tariffs force businesses to raise prices or eat costs. Either way, insurance decisions shift.”

— Melanie Bethel, PayMyPremiums

4. Niche Risks: High-Value Goods

Tariffs on luxury imports = rising replacement costs.

💬 “Diamonds, watches—we insure those. Tariffs raise costs, squeeze pricing.”

— Dustin Lemick, BriteCo

5. Uncertainty Ahead

Some are still assessing the threat.

💬 “Too early to tell.”

— Kris Bryant, Rhodian Group

💬 “A downturn could push agencies to trim tech spend.”

— Colby Tunick, ReFocus AI

What You Can Do

• Watch economic trends that impact your clients.
• Talk to tech vendors about supply risks.
• Keep your tech stack flexible.
• Prep clients for pricing changes due to global factors.

Bottom Line

While the direct impact of tariffs on insurance technology appears minimal for now, industry experts agree it’s too early to rule out future consequences. Most solution providers report little to no operational disruption, but several are monitoring potential ripple effects from upstream vendors, offshore teams, and currency fluctuations. 

The broader concern lies in how tariffs may strain client budgets by driving up the cost of goods, especially for small businesses and luxury item insurers. This financial pressure could lead to reduced insurance coverage, delayed tech investments, and tighter agency budgets. 

The key takeaway? Agencies should stay alert, maintain flexibility in their tech stack, and prepare for shifting client priorities as economic conditions evolve.

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