From privacy protections to wildfire risk management, several states are introducing forward-thinking insurance legislation in 2025.

California

• SB 354 – Insurance Consumer Privacy Protection Act (ICPPA) of 2025
  Introduced by Senator Monique Limón and sponsored by Insurance Commissioner Ricardo Lara, this bill aims to enhance consumer privacy protections within the insurance sector. It establishes a modern privacy rights framework, granting consumers greater control over their personal data. Key provisions include the right to consent to data sharing, amend inaccurate information, and access details about data usage. The bill applies to over 400,000 insurance licensees in California.​

Nevada

• AB 437 – Establishment of a FAIR Plan
  In response to a significant increase in homeowners' insurance policy cancellations due to wildfire risks, Assemblymember Jill Dickman introduced Assembly Bill 437. This bill proposes the creation of a Fair Access to Insurance Requirements (FAIR) Plan, serving as an insurance program of last resort for homeowners unable to obtain coverage through standard providers. To qualify, homeowners must be denied coverage by three standard insurance companies and implement recommended wildfire mitigation measures. ​

• NV Energy's Wildfire Self-Insurance Policy Proposal
  NV Energy has submitted a proposal to the Public Utilities Commission of Nevada to establish a $500 million wildfire self-insurance fund. This initiative aims to address the financial impacts of catastrophic wildfires and provide stability for customers. If approved, the policy would be funded through customer rate adjustments over a ten-year period, with Northern Nevada customers seeing an approximate $2.40 monthly increase and Southern Nevada customers about $0.50. ​

Washington

• SB 5331 – Insurance Restitution and Fines Bill
  This bill would have allowed the Washington Office of the Insurance Commissioner (OIC) to order insurers to pay restitution directly to consumers for misconduct and to fine home and auto insurance companies up to $10,000 per violation. However, an amendment introduced in the House capped total fines at $100,000, drawing criticism for weakening consumer protections. The bill ultimately died in the House Consumer Protection and Business Committee, with opponents arguing that the cap undermined deterrence and favored large insurers over affected consumers.

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Newly implemented tariffs on auto-related imports are expected to influence the cost structure within the auto insurance sector significantly. With potential ripple effects across the broader economy, insurance industry analysts estimate a collective increase of $27 billion to $53 billion in insurer costs over the next 12 to 18 months. This upward pressure is anticipated to gradually make its way into policy premiums — though there are still mechanisms within the system for managing or mitigating some of these increases.

How Tariffs Are Linked to Insurance Premiums

The Trump administration's new trade measures include tariffs on auto imports, raw materials, and car parts, with rates reaching as high as 25%. These additional duties could raise the cost of vehicles by as much as $15,000, according to some projections. More critically for the insurance sector, the elevated cost of replacement parts and labor will feed directly into underwriting models and pricing strategies.

Insurify, a rate-comparison platform, estimates that average annual auto insurance costs could climb from $2,300 to over $2,750 for a single vehicle. The process won't be instantaneous — insurers typically analyze the financial impacts and submit proposed rate adjustments for regulatory review before making changes. However, the inflationary effect is widely regarded as inevitable.

As Robert Passmore of the American Property Casualty Insurance Association explains, all insured parties may be affected to some extent, regardless of their vehicle’s specific part origins. Insurance spreads risk across the pool, and these broader cost increases are expected to ripple through the system.

Industry Cost-Saving and Adjustment Strategies

Although tariff-related premium increases may be delayed, financial strategists within the insurance ecosystem are already evaluating ways to adjust and control exposure. Several common approaches are gaining traction:

Competitive Rate Shopping

Insurers responded to recent inflationary periods in different ways, with some increasing rates faster than others. As a result, there is increased variability in pricing across the marketplace. Comparative analysis of available policies may uncover significant pricing differences, particularly during transitional pricing periods.

Adjusting Deductibles to Offset Premium Hikes

Raising a policy deductible is a long-standing method for reducing monthly or semiannual premium costs. While this approach shifts more initial financial responsibility onto the insured in the event of a claim, it can also help maintain affordability in times of systemic cost inflation. Common deductible ranges now span $500 to $1,000, and adjustments are often allowed mid-term without a waiting period.

Participating in Telematics Programs

Usage-based insurance programs, often referred to as telematics, use driver behavior monitoring tools to set premiums based on real-world performance metrics. These include data points like speed, acceleration, and braking patterns. While these programs can offer premium reductions for specific behavior profiles, they also come with the possibility of rate increases if monitored behavior is deemed risky.

Reassessing the Value of Bundled Policies

The conventional wisdom of bundling home and auto insurance for savings is under renewed scrutiny. Rising homeowners insurance premiums — independent of the new tariffs — may diminish or offset the financial benefit of bundling. Any bundled offering should be evaluated holistically to determine if it still delivers a net savings compared to individual policy purchases.

Looking Ahead

The interplay between trade policy and insurance markets underscores the complexity of pricing models and the interconnectedness of global supply chains. While the full extent of tariff-related insurance increases will take time to materialize, now is a prudent moment for careful evaluation of current policies, cost structures, and adjustment options. The decisions made today could help position all parties more effectively ahead of broader systemic shifts.

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Josh Moreau has joined Alliant Insurance Services as Vice President within its Employee Benefits Group. Based in Los Angeles, Moreau will focus on private equity and mergers and acquisitions. He will leverage his extensive experience in business development, operations, and strategic leadership to drive growth and create value for clients and partners. “Josh’s ability to build strong industry relationships, foster collaboration, and identify strategic opportunities makes him a key addition to our team,” said Kevin Overbey, President, Alliant Employee Benefits. “His expertise in connecting talent and driving business growth will further enhance our ability to deliver innovative and high-impact solutions for our clients.” Moreau’s background in business development and operational strategy enables him to develop customized solutions that help clients navigate the evolving benefits landscape while fostering the continued growth and expansion of Alliant Employee Benefits. Prior to joining Alliant, Moreau was Chief of Staff with a family office investment firm where he was engaged in network building, producing high-profile investor conferences across the U.S. and Asia, and working closely with top industry professionals. Moreau earned a bachelor’s degree in business management from Salem State University. About Alliant Insurance Services Alliant Insurance Services marks a century of success as the nation’s leading specialty broker. We operate through a network of specialized national platforms and local offices to offer our clients a comprehensive portfolio of risk solutions built on innovative thinking and personal service. The business of managing risk is complex, and Alliant meets this complexity head-on with creativity and agility. Alliant has changed the way our clients approach risk management and benefits, giving them complete access to our resources and expertise—regardless of where the resource is located—to capitalize on new opportunities to grow and protect their organizations and their people. Alliant is recognized as a leading destination for top-tier brokerage talent in the U.S., attracting brokers and specialists across a diverse spectrum of disciplines who are eager to advance their careers. With the advantage of being majority employee-owned, professionals choose Alliant for autonomy, unparalleled resources, and a unique equity ownership opportunity. As a testament to our commitment to excellence, Alliant maintains an impressive 99% producer retention rate and has earned Forbes’ prestigious title of one of America’s Best Large Employers. Visit us at alliant.com. Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com.