Changing the Minds of Those in Power

Nancy Grover | Media Relations Director

The United States was built on “the peoples” involvement in the government. Whether it is volunteering for a candidate or meeting with elected officials, personal advocacy remains the key to change.

In May, a meeting between a NAMIC member company representative and his congressman resulted in an amendment to the proposed Terrorism Risk Insurance Revision and Extension Act of 2007 that would benefit smaller insurance companies. The amendment would allow these companies to opt out of a controversial mandate requiring insurance companies that provide terrorism insurance to also offer coverage for attacks by weapons of mass destruction.

This meeting was the direct result of NAMIC’s Congressional Contact Program.

CCP is a 22-year-old, well-coordinated effort that enables NAMIC to deliver to senators and representatives its members’ messages on important issues, such as terrorism insurance, insurance regulatory reform, and coastal insurance issues. But it is only one part of the association’s larger efforts to impact state and federal legislation.

NAMIC’s advocacy efforts consist of a combination of direct lobbying, the NAMIC Political Action Committee, and our grassroots programs, such as CCP. All three components of the association’s advocacy program are essential to ensuring members have their voices heard on Capitol Hill and in state legislatures.

Member participation is crucial

Two prongs of the advocacy program – NAMIC PAC and grassroots activities – involve, and are dependent upon, the active participation of NAMIC’s members. “By contributing to the NAMIC PAC, members help those politicians supportive of the property/casualty insurance industry get elected, and when our members meet face to face with federal state lawmakers to discuss pertinent issues, they ensure NAMIC’s positions are known and considered before major decisions affecting our industry are made,” said Jimi Grande, NAMIC’s vice president for federal and political affairs. “Our members who become part of the political process set the stage for our lobbyists to then work with congressional staff members to help craft legislation that endorses open markets and free enterprises, allowing our industry to thrive.”

Equally important to NAMIC’s advocacy efforts are the grassroots activities undertaken by NAMIC members, the premier one being CCP. This unique program allows member-company representatives to reach out to their states’ delegations in Congress to explain the local impact of national legislation.

Despite the perception that state and local governments dominate the regulatory course of the insurance industry, the federal government has increasingly taken a lead role on many of the most important issues. Coastal insurance issues, threats to the McCarran-Ferguson antitrust exemption, a proposed optional federal charter, and terrorism insurance are a few that have attracted attention in Congress this year (see story on page 28).

Fortunately, CCP is an agent for NAMIC members to influence decisions on those issues. That’s one reason 2007 is already a record year in terms of the number of members trekking to Capitol Hill for CCP visits.

“More than 31 insurance executives have, or are planning, to visit federal lawmakers from 34 states through CCP this year,” said Georgiann Howell, NAMIC’s grassroots communications director. “That’s a phenomenal demonstration of the commitment NAMIC member company executives have made to get our message across to Congress.”

A typical CCP visit involves several members from a particular state escorted by one of NAMIC’s federal lobbyists, and embarking on pre-arranged visits with their members of Congress and/or their staff. The informal settings, away from the flashing bulbs of the media, allow for frank, candid discussions of issues central to the property/casualty industry.

“For some members of Congress, this is their first opportunity to hear how a piece of legislation will directly affect an insurer in their constituency,” Grande said. “The result can be eye-opening.”

The Manzullo amendment that would protect smaller insurers from the mandatory make available provision for nuclear, biological, chemical, and radiological events in the terrorism insurance legislation is a case in point. This important amendment would not exist were it not for a conversation that was begun on a CCP visit and followed up on by NAMIC’s lobbying team. Another is the successful attempt, so far, to thwart an attempt to eliminate the McCarran-Ferguson antitrust exemption. At the beginning of the year, the momentum to amend the McCarran-Ferguson Act was at a fevered pitch, however, through CCP, we were able to explain to hundreds of elected officials the terrible consequences of any changes to this Act. Momentum has greatly been slowed. But there are still several powerful senators who have not yet given up on their attempts. We anticipate another round with them sometime this fall.

Other grassroots activities

While CCP is the main grassroots activity, it’s certainly not the only one. There are a variety of activities members can undertake to influence the decision-making process on Capitol Hill, as well as in state legislatures, where insurance policy has traditionally been made.

An online Legislative Action Center, a new advocacy destination found at www.namic.org/legactioncenter, is the latest tool to connect NAMIC members with the legislative process. By signing up, a participant immediately has a meaningful opportunity to make a positive impact on legislative decisions affecting his or her business.

The Legislative Action Center helps members identify and learn more about their elected officials – both state and federal – and their voting records. But, legislators need to hear from the people they represent as this is the only way to ensure they are aware of and understand the issues, concerns, and interests of their constituents. When legislative decisions are drawing near, the Legislative Action Center will alert members, urging them to take action to influence public policy by communicating their views to state and/or federal lawmakers, via sample letters. As key activists, members will be in-the-know at the critical moment when a call to action is necessary or when decisions are being made on issues such as federal regulation of insurance, legal reform, terrorism insurance, asbestos reform, and small property/casualty company taxation. Best of all, this new system will save NAMIC members time, as sending a personal letter to a member of Congress may be done with just a few mouse clicks.

Once a call to action is sounded, NAMIC provides all the necessary tools to help educate congressional representatives on these types of issues. Members of Congress want to hear how proposed legislation will affect their constituents, and since insurance professionals know more about their businesses than anyone, Congress needs the benefit of their expertise.

The future

While impressive in its scope and results so far, NAMIC’s advocacy efforts for 2007 are certainly not complete. Several additional states will be represented on Capitol Hill this fall as Congress continues to consider important legislation to the insurance industry.

Terrorism insurance legislation must still be considered by both the House and Senate. Threats to the McCarran-Ferguson antitrust exemption persist. Coastal insurance issues remain on the front burner, as well.

During this time, we will also prepare for a challenging year in 2008, with the presidential election up for grabs and its dissonant noise drowning out almost everything else happening on Capitol Hill.

Many NAMIC members will become key activists this year and in the years ahead through the Legislative Action Center and/or as CCP and NAMIC PAC participants. This will ensure the association’s and its members’ interests are protected for years to come.

Posted: Tuesday, October 16, 2007 12:00:00 AM. Modified: Tuesday, October 16, 2007 3:22:10 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.