In the wake of the election, property and casualtyinsurance-industry officials promised to work constructively withPresident Obama, his administration and Congress “to protect andadvance” industry interests over the next four years.

Several also noted upcoming industry priorities, includingextension of the Terrorism Risk Insurance Act and adequate fundingof the National Flood Insurance Program.

They also voiced concern about the makeup of the key HouseFinancial Services Committee, which, as the Property and CasualtyInsurers Association of America noted, “will look a lot differentin 2013.”

PCI officials said that six members of the committee werealready leaving due to redistricting, retirements or losingprimaries, and at least five more went down Tuesday night, whichmeans roughly 18 percent, or 11 of the 61-member committee, won'tbe back.

These include Rep. Judy Biggert, R-Ill., chair of the InsuranceSubcommittee, who was defeated in her bid for re-election. TheCouncil of Insurance Agents and Brokers, the Independent InsuranceAgents and Brokers of America, the American Insurance Associationand other groups also noted concern with Biggert's loss.

“The insurance industry did lose a true champion when InsuranceSubcommittee Chair Judy Biggert lost her race in Illinois, and shewill be sorely missed,” says Charles Symington, IIABA senior vicepresident of government affairs.

AIA spokesman Willem Rijksen adds, “No longer having Rep.Biggert's knowledge and support on insurance issues will no doubtbe a loss but we remain well positioned on that committee.”

STATUS QUO

At the same time, Joel Wood, senior vice president of governmentaffairs for the Council of Insurance Agents and Brokers, says, “Forall of the profound national (and international) consequences ofthis election, the central truth remains that the status quo hasbeen upheld, for better or for worse,”

He adds, “Historically, property and casualty issues haven'tbeen partisan; we don't expect that to change.”

Wood notes, “Looking at the incoming Congress, there'sabsolutely no reason to believe that we won't be able to representthe interests of Council member firms in a very positive way.”

Jimi Grande, senior vice president, federal and politicalaffairs for the National Association of Mutual Insurance Companies,says, “The elections have made it clear that for Congress toaccomplish anything, both parties must work together.”

Grande says there will be “a lot of new faces in Washington,with a new Congress coming in, new chairmen taking the gavels forkey committees in the House and Senate, and important changes intop positions within the administration.”

INDUSTRY INITIATIVES

For NAMIC, Grande says, “We will continue to press for areauthorization of the Terrorism Risk Insurance Act and to fightoff new taxes and regulations that threaten our industry andpolicyholders.”

Leigh Ann Pusey, president and CEO of the American InsuranceAssociation, says, “The 2012 election is now behind us, butimportant issues lie ahead. Congress and the president must worktogether in a bipartisan manner to address fiscal cliff issues andbring much needed certainty and sustained growth to our nation'seconomy.

“AIA will continue to work with the Obama Administration onissues concerning Dodd-Frank Act (DFA) implementation. AIAmaintains the position that property-casualty insurers engaged inregulated insurance activities do not pose a threat to financialstability and should not be regulated like banks.”

She adds, “It is imperative that DFA implementation followscongressional intent by addressing gaps while not obstructingcompetitiveness.”

In its statement, AIA also noted that global and domesticregulatory and capital issues will be big going forward.

“AIA continues to engage in all phases of the ongoingregulatory modernization debate in the U.S. and abroad. Thisdiscussion remains centered on group supervision, capital adequacyand systemic risk,” Pusey said.

She said the AIA will work with the FederalInsurance Office to promote international regulatory initiativesthat foster coordination, cooperation, and communication, andultimately result in more efficient and effective regulation thatpromotes a level competitive playing field and development ofprivate markets.

She added that a top legislative priority for AIA in 2013 willbe the reauthorization of the Terrorism Risk Insurance Act(TRIA).

“TRIA is a fundamental part of this nation's economic security,”Pusey said.

Andrew C. Harris, president of the National Association ofProfessional Insurance Agents, says PIA “looks forward tocontinuing to work with [Obama's] administration and Congress toprotect and advance the interests of small businesses, professionalinsurance agents and the consumers they serve.”

He says PIA will continue to work to ensure that theimplementation of the Patient Protection and Affordable Care Act“will be done in a way that fully utilizes the expertise ofprofessional insurance agents, which is the best way to serve theconsumer.”

Harris adds, “While President Obama and Governor Romneycampaigned on vastly different views of the role of the privatemarket and regulation, PIA will continue our efforts in Washingtonto promote the valued role of the independent agent and will seekbusiness-friendly policies that will encourage a strongmarket.”

THE STATES

PCI's statement notes that, overall, Democrats improved theirposition in the states, taking over both chambers in Maine andMinnesota, flipping the New York Senate and the New HampshireHouse, breaking a tie in the Oregon House, gaining supermajoritiesin Illinois and California, taking away a Republican supermajorityin Florida.

PCI said that “Republicans flipped the Arkansas legislature forthe first time since Reconstruction, and also made big gains inWest Virginia.”