Insurance Alert! Trump's Tariffs Threaten to Raise Auto Insurance Prices in Mexico and the U.S.; IMSS Reports Job Losses

The insurance sector faces new challenges and presents important updates this Tuesday, May 6. An analysis from the United States warns that the Trump administration's proposed tariffs on vehicles and parts from Mexico and Canada could significantly increase auto insurance premiums. Meanwhile, in Mexico, the Mexican Social Security Institute (IMSS) reports a decline in formal employment, and the Mexican Social Security Institute (AMIS) is making progress in preparations for its annual convention.

The tariff policies proposed by former President Donald Trump could have a direct and significant impact on the cost of auto insurance, both in the United States and, indirectly, in Mexico. An analysis by the firm Insurify (U.S.) estimates that annual auto insurance premiums could increase by 8% in 2025 if 25% tariffs on imported vehicles and parts from Canada and Mexico go into effect. Without these tariffs, the projected increase would be 5%.

The main reason is the rising cost of cars and, crucially, spare parts. It is estimated that approximately six out of ten spare parts used in repair shops in the United States are imported from Mexico, Canada, and China. Some of these parts cross the border multiple times before final assembly. The increased cost of these parts would translate into higher outlays for insurance companies to cover claims, a cost that would inevitably be passed on to consumers through higher premiums. This situation highlights the deep interconnectedness of supply chains in North America (USMCA) and how trade policy decisions can create vulnerabilities and additional costs for the insurance industry and its customers.

The Mexican Social Security Institute (IMSS) continues to modernize its services, making it easier for citizens to obtain their Social Security Number (NSS) online, an essential requirement for accessing health services and benefits.

However, on the employment front, the Mexican Social Security Institute (IMSS) reported a loss of 47,000 formal jobs affiliated with the institute during the month of April 2025. This figure is an important indicator of the health of the Mexican labor market. In press releases on May 5, the IMSS also reported on the status of affiliated jobs and highlighted that the CMN Siglo XXI Cardiology Hospital received international certification as a Center of Excellence.

For Infonavit beneficiaries, please note that the institution offers Accident Damage Insurance for those who have an Infonavit loan for home purchases, providing an additional layer of protection.

The Mexican Association of Insurance Institutions (AMIS) is preparing its 25th Convention of Mexican Insurers. The event, which will feature prominent speakers such as economist Joseph Stiglitz, will focus on two crucial topics: health and savings. In previous news from April,

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