Insurance Professionals Respond to Tumbling Consumer Confidence
As the American consumer confidence index falls to its lowest point since early 2021, insurance leaders are noting shifts in how small businesses are viewing risk. According to a recent report, economic uncertainty is increasingly influencing client conversations, even if immediate needs remain steady.
According to recent data released by The Conference Board, the consumer confidence index has declined, registering a 7.2-point drop to reach 92.9. The report indicated an even more pronounced decline in optimism surrounding income, business, and labor conditions, which fell by 9.6 points to 65.2 — the lowest level in 12 years.
Shifting Client Discussions
Insurance professionals report that current economic conditions are beginning to affect their client interactions, although the effects are not always direct. “In times of economic uncertainty, having trusted insurance partners that are there to be with you through the good times and step in during the bad times is more important than ever,” stated Graham Topol, co-founder and co-CEO of MGT Insurance. He continued, “We take our role very seriously — it’s more important for us to be good partners than ever.”
When asked if risk profiles are shifting in response to the decrease in confidence, Topol commented, “The kinds of businesses we’re working with — small businesses that are deeply embedded in their communities — they’re not going anywhere. They’re still going to be the backbone of the American economy.”
Business Disruption Concerns
Despite the inherent resilience of small businesses Topol noted, the ongoing uncertainty tied to tariffs, potential labor cuts, and wider economic policy is creating unease. “It’s certainly an uncertain time. Business disruption is something we’re watching,” Topol explained. “But I haven’t seen major changes yet in how our clients are approaching their insurance needs.”
Topol acknowledged the potential for ripple effects from growing concerns that the U.S. economy may be entering a period of stagflation. Given the Federal Reserve’s warnings of a challenging environment to come, Topol stated, “We’re committed to that insured class, and right now, that means staying steady even when the economy isn’t.”
