As American consumer confidence drops to its lowest level since January 2021, insurance leaders say economic unease is starting to influence how small businesses think about risk — even if their core needs remain unchanged for now.
According to new data released by The Conference Board, the consumer confidence index slid 7.2 points to 92.9, undercutting already grim expectations. Optimism around income, business, and labor conditions fell even further, plunging 9.6 points to 65.2 — the lowest level in 12 years.
Insurance professionals say that this economic volatility is already filtering into client conversations — though not always in obvious ways.
“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,” said Graham Topol, co-founder and co-CEO of MGT Insurance. “We take our role very seriously — it’s more important for us to be good partners than ever.”
Asked whether risk profiles are shifting in response to falling confidence, Topol added: “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.”
Despite the sense of resilience, ongoing uncertainty around tariffs, labor cuts, and broader economic policy is fueling unease.
“It’s certainly an uncertain time. Business disruption is something we’re watching,” Topol said. “But I haven’t seen major changes yet in how our clients are approaching their insurance needs.”
Still, Topol is bracing for ripple effects as the US economy veers toward a possible stagflation scenario with Federal Reserve officials warning of a tougher road ahead.
“We’re committed to that insured class,” Topol said. “And right now, that means staying steady even when the economy isn’t.”
