Tariffs will become a permanent fixture in the global economic landscape, shaping strategic business planning across industries, including insurance, according to Charles Brindamour, CEO of Intact Financial Corporation, a major player in specialty insurance globally.
Brindamour shared his assessment of the current global geopolitical and economic environment at the AIRMIC conference in Liverpool this week (June 9-11).
His remarks come as businesses continue to navigate mounting economic nationalism, trade restrictions, and uncertainty in international markets. “We think the tariffs are here to stay. That’s a permanent change,” Brindamour said.
However, the Intact CEO stressed that the impacts on insurance would be “manageable.”
“This isn’t crisis territory,” Brindamour said to insurers. “If you manage pricing, risk selection, and supply chain well, this environment shouldn’t derail your strategy.”
United States President Donald Trump’s “Liberation Day” tariffs were challenged earlier this month by the Court of International Trade, which ruled that the Republican leader exceeded his authority when he announced additional levies on foreign-made goods.
The Trump administration swiftly appealed the verdict, and the tariffs have been temporarily reinstated by the federal appellate court. The US trade court’s decision is one of several legal challenges to Trump’s aggressive trade policy.
“While challenges in the courts exist, we believe the administration will prevail,” Brindamour said. “We don’t think they’ll go against the Supreme Court if it gets there, but there are many other avenues to establish permanence, like working with Congress.”
Brindamour warned that the current geopolitical climate, particularly in the US, is reshaping the financial and investment outlook for firms with cross-border operations. The US administration’s aggressive tariff policies, he said, are already dampening growth expectations, pushing inflation higher in developed economies, and increasing the risk of stagflation.
“Economically, this is probably the most impactful near-term action by the (US) administration,” Brindamour said. “What it means is that our customers will put greater emphasis on value for money. Price competes with other features, but it is now clearly at the top and will increasingly drive decisions for business customers.”
The Intact CEO also linked tariff policy to broader fiscal challenges in the US, where a sustained deficit of around 7% of GDP is prompting what he called “a shift towards taxing foreign capital.”
He cautioned that this move, while politically popular, could increase the cost of capital and harm the competitiveness of international firms operating in the US.
In this context, Brindamour emphasized the continued importance of the US dollar as the bedrock of global financial markets. While he acknowledged growing concerns about US debt levels and political instability, he dismissed the idea that the dollar could lose its reserve currency status anytime soon.
“There’s no viable alternative,” Brindamour said. “The dollar still underpins 80% of global forex transactions and 60% of central bank reserves.”
Despite the geopolitical headwinds, Brindamour reaffirmed Intact’s commitment to its US business, noting that “while the cost of investing has gone up, we remain confident in the long-term strength of the US market.”
Still, he stressed that “scenario planning is no longer optional (but) essential.”
Brindamour also delivered a stark warning about the erosion of trust in key US institutions and its effect on international relationships, especially with long-standing allies like Canada.
“As a Canadian, it’s surreal to witness the breakdown in trust between our nations,” he said. “Old friendships are being cast aside, while adversaries are sometimes treated more favorably. That has real implications – not just politically, but for how we conduct business and assess risk.”
Brindamour expressed concern over the increasing centralisation of power in the US executive branch and attacks on traditionally independent institutions such as the judiciary, media, and federal agencies. For Canadian firms operating across the border, this instability creates uncertainty.
“The weaponisation of institutions like the IRS, FBI, and Department of Justice could become the most predictive indicators of long-term systemic damage,” the CEO said.
“The US remains a great country with tremendous advantages, but it is under strain. Trust, transparency, and institutional integrity are the bedrock of investment. When those are in question, capital becomes more cautious, and the cost of doing business inevitably rises.”
Intact Financial Corporation operates a diversified insurance business across North America and Europe. In Canada, it leads the P&C insurance market with offerings through brands like Intact Insurance, belairdirect, and BrokerLink. In the US, its Specialty Solutions division delivers specialty insurance through brokers and agencies. In the UK, Ireland, and Europe, Intact provides a range of insurance products under the RSA brand.
