PERSPECTIVES

Pump Up the Volume

Virtually every day, Congress and state legislatures across the country make decisions that affect our industry. This issue of Property/Casualty Insurance is devoted to our advocacy efforts. Recent passage of the Class Action Fairness Act of 2005 was helped along in no small part by NAMIC members who contacted their senators and their representatives to make their opinions known.

The major change from past failure on class action reform to success was the change in the make-up of the Senate after the November election. This change was a driven by political support and money (read “The Truth About Money” on page 16). NAMIC’s PAC contributed to several of the candidates who were needed to affect change in the Senate. But we need your help to further grow the NAMIC PAC so we can continue to support those who support our industry.

Congress will be making decisions on more issues effecting the insurance industry in the coming year. They include state versus federal regulation of insurance, asbestos reform, an extension of the Terrorism Risk Insurance Act (TRIA) and the taxation of small property/casualty insurance companies.

We live in a representative democracy and it is the responsibility of our elected officials to represent their constituents’ interests on legislative matters. The other half of the equation is our responsibility as constituents to make our voices heard. Congress will pay more attention to those who choose to be represented. Put more simply, “the squeaky wheel gets the grease” in our democracy. This implies a responsibility to participate in NAMIC’s legislative programs. Involvement is the key. NAMIC members must get involved and stay involved at every level of the association and in our country’s political process. Every member of the House of Representatives and one-third of the Senate are elected every two years. In other words, we get the chance to decide whether or not to hire them again. This provides NAMIC members with many opportunities to get to know the candidates personally, volunteer to work on campaigns and vote.

It is essential that we help elect and keep in office candidates whose views and ideals are in line with the issues affecting our industry, regardless of their political affiliation. NAMIC supports political candidates of both parties and independents as well.

The principle on which our success on Capitol Hill rests is our strength in numbers. If we work only as individuals, we merely have a scattered effect. But by working through NAMIC’s political program, and with the state trade associations, we can truly make a difference.

There’s an old saying – “if you don’t have a seat at the negotiating table, it’s your interests that will be negotiated.” We cannot put our heads in the sand and expect others to fight for issues that affect our industry. While your national association will be advancing your agenda, you must add your voice to the dialogue.

A loud voice is not enough, however. The message must be clear. Insurance issues are complicated. Some legislators may not fully understand the diverse ways tax rulings, laws, regulations and tort reform impact insurance companies and their customers – voters all. A personal visit and face-to-face contact to make your senator or representative understand the ramifications of crucial legislation to your company will make a deeper impression than any other kind of contact. Regular personal contact is critical!

How can you get active and make a difference? Visit the Political Action Center on NAMIC Online, www.namic.org, for more information on how you can get involved and connect with your lawmakers.

I know it can be distracting, uncomfortable and expensive, but as Winston Churchill said, “… democracy is the worst form of government except all those other forms that have been tried from time to time.”

Charles M. Chamness
President, NAMIC

Posted: Friday, April 01, 2005 12:00:00 AM. Modified: Wednesday, September 07, 2005 2:52:24 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.