Scott Seaman Discusses Anticipated Shifts Under a New Presidential Administration for the U.S. Insurance Industry in 2025

In a recent Carrier Management article, Scott Seaman, a partner and co-chair of Hinshaw's Insurance Services Group in Chicago, discussed potential shifts in the U.S. insurance landscape under the incoming Trump Administration in 2025.

Seaman noted that with Republican majorities in both Houses of Congress, President Trump will likely see most of his cabinet appointees confirmed and his policy priorities enacted. Insurers will benefit if the 2017 tax cuts are extended, with Seaman noting that if "Trump is successful in continuing the tax reductions and in slowing economic inflation, insurers will be able to reduce operational costs and claims costs, respectively."

Additionally, Seaman noted that personnel and regulatory changes are expected at the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC). While FTC personnel cuts may lead to challenges for board directors during mergers and acquisitions, a decrease in SEC enforcement would alleviate compliance pressures for Directors and Officers (D&O) insurers.

"The general expectation is that D&O exposures related to compliance and enforcement risks by government agency actions will decrease, which is healthy in terms of reducing D&O exposures," Seaman said.

He also highlighted the implications of the U.S. Supreme Court's June 2024 ruling that removed the 40-year-old Chevron deference doctrine requiring federal courts to defer to federal agencies' interpretations of ambiguous statutes. "Federal judges will now determine the meaning of these laws. To the extent there are exposures caused by regulations, they will moderate in the next administration."

Read the full article (subscription required).

• "Mixed Bag: What Trump 2.0 Tariffs, DOGE Activities Mean For Insurers" was published by Carrier Management on December 11, 2024.

A version of this article was also published on January 2, 2025, by the Insurance Journal.