As we approach the 2024 presidential election, insurance agency owners should be aware of how potential policy changes could impact their businesses and personal finances. At ALKEME, we are always telling insurance agencies that they need a plan for the future, and it has never been more important than now. While the ultimate outcomes remain uncertain, here are some key areas to watch:

Tax Policy

Both major candidates have proposed significant changes to the tax code, though in different directions:

• Vice President Harris has suggested raising the corporate tax rate to 28% and increasing taxes on high-income earners. This could potentially increase tax burdens for successful agency owners and reduce after-tax profits.
• Former President Trump has proposed making his previous tax cuts permanent and further lowering the corporate rate to 15%. However, it’s unclear if these cuts could be fully implemented or sustained given rising national debt concerns.

Regardless of who wins, the expiration of key provisions from the 2017 Tax Cuts and Jobs Act in 2025 means major tax changes are likely coming. Agency owners should prepare for potential shifts in both personal and business tax planning.

Economic Outlook 

The candidates have divergent economic visions that could impact agency growth and valuations:

• Harris supports increased government spending on infrastructure and social programs, which could stimulate economic activity but potentially lead to higher inflation and interest rates
• Trump advocates for deregulation and protectionist trade policies, which may benefit some domestic industries but could disrupt supply chains and increase costs.

Both approaches carry risks and uncertainties for the broader economy. Agency owners should closely monitor economic indicators and be prepared to adapt their business strategies accordingly.

Healthcare Policy

Potential changes to healthcare policy could significantly impact the insurance landscape:

• Harris supports expanding the Affordable Care Act and potentially introducing a public option, which could reshape health insurance markets.
• Trump has promised to repeal the ACA, though details on a replacement plan remain unclear.

Agency owners specializing in health insurance should be particularly attuned to these potential shifts and how they might affect their product offerings and client base.

Regulatory Environment

The regulatory approach of the next administration could have far-reaching effects on the insurance industry:

• A Harris administration may pursue stricter consumer protection measures and increased oversight of financial services.
• Trump has pledged to continue his deregulatory agenda, potentially easing compliance burdens but also introducing new market dynamics.

Agency owners should stay informed about potential regulatory changes and be prepared to adjust their compliance strategies as needed.

The Bottom Line

While the full impact of the election remains to be seen, one thing is certain: change is coming. The next few years are likely to bring significant shifts in the tax, economic, and regulatory landscape that will affect insurance agency owners.

Now is the time to start scenario planning, consulting with financial advisors, and ensuring your business is agile enough to navigate an uncertain future. By staying informed and proactive, agency owners can position themselves to thrive regardless of the election outcome.

If you would like to learn more about how a partnership with ALKEME could help your agency navigate an uncertain future, please reach out today.