Headed by Starr Cos., Insurance Industry Has Spent $64 Million on Candidates, Campaigns
October 13, 2016 by Frank Klimko
WASHINGTON – With the general election just weeks away, representatives of the U.S. insurance industry have contributed $64 million to support lawmakers they say they believe can help address some of the insurance industry’s top priorities, like reducing the federal regulatory burden.
Contributions this year have already eclipsed the $58 million the industry spent in the 2012 cycle, according to the nonpartisan Center for Responsive Politics, which tracks political contributions. The CRP’s data is based on Federal Election Commission filings, released Sept. 21, from political action committees that are made as part of the lobbying efforts of industry representatives.
Although the election is set for Nov. 8, many of the races that could determine control of both the U.S. Senate and the House are far too close to call, said Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies.
“There is so much at stake in selecting the next policy-making forum,” Grande said. “And, there are many issues. There was a day when there was only a handful of small issues.”
At the top of the industry’s list is to reduce the impact of a torrent of new federal rules, Grande said. According to a recent Property Casualty Insurers Association of America-Ward study, insurance regulatory costs increased 18% over the past two years.
“All of these federal agency rules are torturing the industry in many ways and there fewer tools to influence the rulemaking side,” Grande told Best’s News Service.
The largest single contributor was Starr Cos., which spent $15 million to support GOP causes. Starr donated $10 million on behalf of former Florida Gov. Jeb Bush’s failed presidential campaign and $5 million to the unsuccessful presidential bid of U.S. Sen. Marco Rubio, who is now running for re-election to his Senate seat from Florida.
The other top insurance industry contributors are: New York Life, $2.5 million, Blue Cross and Blue Shield Association, $2.5 million; the National Association of Insurance and Financial Advisors, $2 million; Aflac Inc., $1.6 million; and the Independent Insurance Agents and Brokers of America, $1.5 million.
New York Life generally lobbies on finance-related issues; it gave the campaign of Democratic White House nominee Hillary Clinton, $147,000, but also gave $36,300 to House Majority Leader Kevin McCarthy, R-Calif.
This year, New York Life lobbied in favor of HR 4294, the Strengthening Access to Valuable Education and Retirement Support Act; HR 4293, the Affordable Retirement Advice Protection Act; and HR 1090, the Retail Investor Protection Act, according to lobbyist filings. All were intended to halt or slow down implementation of the U.S. Department of Labor fiduciary rule, which changes the way retirement advice is delivered (Best’s News Service, Feb. 1, 2016).
Blue Cross gave the campaigns of Clinton $140,000 and House Speaker Paul Ryan, $58,000. Aflac gave $10,000 to the campaigns of U.S. House Financial Services Committee Chairman Jeb Hensarling, R-Texas, and $12,500 to House Minority Whip Steny Hoyer, D-Md., and $10,000 to U.S. Rep. Maxine Waters, D-Calif.
In this year of a presidential election, NAIFA also concentrated on the so-called down-ticket or local races, giving $10,000 each to the re-election efforts of Hensarling and Bill Huizenga, R-Mich., chairman of the House Financial Services subcommittee on monetary policy and trade. The committee has been holding hearings on the impact of the fiduciary rule, which becomes effective in April.
“High on the list is enhancing the ability of retirees to save for themselves and receive retirement advice,” Diane Boyle, NAIFA senior vice president of federal government relations, told Best’s News Service. “The fiduciary rule is making significant changes to the marketplace.”
“But, a lot of our priorities will depend on election results,” Boyle said.
NAIFA is also supporting former Florida state Sen. Al Lawson, a democrat, insurance agent and former association member, in his run for an U.S. House seat, Boyle said. The association gave his campaign $2,500.
The Big I supported two U.S. House members who hold congressional leadership positions important to the industry, giving $16,500 to Sean Duffy, R-Wis., chairman of the House Financial Services Oversight and Investigations subcommittee, and $15,000 to former insurance broker Blaine Luetkemeyer, R-Mo., chairman of the House Financial Services Housing and Insurance subcommittee. The Big I also gave $60,000 to the National Republican Congressional Committee and $30,000 each to the National Republican Senatorial Committee, the Democratic Senatorial Campaign Committee and the Democratic Congressional Campaign Committee.
The Big I has seen its campaign contributions increase in each election cycle, Charles Symington, senior vice president for government affairs for the IIABA, told Best’s News Service.
“We contribute to members who support the independent agency system,” Symington said. “But, the promise of votes does not follow PAC contributions. Our members are very politically engaged.”
The American Insurance Association Political Action Committee has distributed about $110,000 so far in this election cycle, contributing $7,500 to Luetkemeyer’s reelection effort and $1,500 to U.S. Rep. Ed Royce, R-Calif, co-author of a bill to reform the National Flood Insurance Program.
The NFIP reauthorization effort — the program expires next year — is an AIA priority, Tom Santos, AIA’s federal affairs vice president, told Best’s News Service.
“The big ‘to-do’ is flood insurance,” Santos said. “My sense is this would be a big issue whether it was expiring or not. Part of the debate is what we are doing as a nation on natural disasters and how to deal with mitigation.”
The Property Casualty Insurers Association of America Political Action Committee, known as PCIPAC, has given about $470,000 to candidates in this cycle. Donations include: $20,000 to House Speaker Paul Ryan; and $10,000 each to Luetkemeyer, McCarthy and Waters.
Nat Wienecke, PCI senior vice president, federal government relations, told Best’s News Service the organization gives to candidates of both parties. Establishing federal guardrails to prevent the intrusion of global insurance standards on the U.S. regulatory system is a PCI priority, he said.
“Insurance as a general matter is not a partisan issue,” Wienecke said. “We plan the long game and the mission of our PAC is to elect pro-business, pro-P/C candidates.”
(By Frank Klimko, Washington correspondent, BestWeek: Frank.Klimko@ambest.com)
