WASHINGTON–Insurance interests in Washington are both publicly and privately ecstatic over the decision of the National Association of Insurance Commissioners to name former Nebraska Sen. Ben Nelson as its new chief executive officer.

One of the key reasons industry lobbyists are strongly supportive if his appointment is that a top priority for the property and casualty insurance industry is renewal of the Terrorism Risk Insurance Act. Industry lobbyists believe he will be helpful in persuading reluctant senators to support the controversial bill.

Nelson has been the primary candidate since late October. He is one of two Washington-oriented officials that state insurance regulators wanted to see become the association's CEO as they sought to keep state insurance regulation relevant, say two insurance commissioners familiar with the discussions.

The other top candidate was Michael Leavitt, former Utah governor, former secretary of the Department of Health and Human Services and former administrator of the Environmental Protection Agency.

Leavitt was “just too pricey,” one of the commissioners involved in the search said.

Nelson was approached because he was “comfortable” remaining in Washington, according to a number of sources, he was a moderate Democrat with close ties to the administrations and he had some “markers outstanding” with the administration because he was a key vote on the health care bill.

He was also an insurance commissioner who maintained close ties with state insurance regulators and governors, and was supportive and helpful on insurance issues to the industry.

He is also well-liked by his fellow senators, and maintained communications at all times with both Republicans and Democrats in the Senate.

His vote for the healthcare legislation was opposed by a Nebraska electorate that has moved strongly to the right, but critical for both the Democrats and the Obama administration.

It was even more critical because the administration was unable to persuade any Republicans to support it, despite huge efforts to sway Maine Republicans Olympia Snowe and Susan Collins to do so.

Moreover, many Republicans opposed to the bill got Nelson to put provisions into the legislation that were priorities to their constituents, a fact that will be helpful as Nelson ploughs congressional corridors in support of keeping the NAIC relevant.

Indeed, Nelson stayed around until Christmas Eve 2009 to help companies and industries that wanted provisions included in the healthcare bill, according to several congressional staffers and industry lobbyists involved in the process. A number of those special interests were sent to Nelson by Republican senators, these staffers and lobbyists acknowledged.

For the record, Leigh Ann Pusey, president and CEO of the American Insurance Association, says that “Nelson brings a high-level of knowledge, experience and leadership that will benefit the NAIC and the insurance marketplace.”

She says Nelson has a firsthand understanding of the important role that insurers play in the economy given his prior experience as a governor, insurance company CEO, and previously as director of the Nebraska Department of Insurance. “Indeed, AIA has maintained a strong relationship with Nelson in his various public and private sector capacities for nearly four decades,” Pusey says.

Joel Wood, senior vice president of government affairs for the Council of Insurance Agents and Brokers, says that “The emails among the lobbyists have been blazing, and not a one of us disagrees that the NAIC is tremendously fortunate to have landed Nelson.”

Wood says he brings unique stature, credibility, experience and judgment to the job.

“Republicans and Democrats alike view him as hard-working, reasonable and a member of the vanishing middle ground in politics,” Wood says.

“To the extent that there's tension between the evolving international role of the FIO and the traditional international engagement of the NAIC, Nelson adds gravitas to the states,” Wood says.

But, Wood adds, “he has personal skills that I think are going to complement, not exacerbate, a collegial advocacy for the American insurance industry on the international stage.

“Running the NAIC is like herding cats; it'll be a hard job. But there's no better CEO that could have been chosen,” says Wood.

David Sampson, president and CEO of the Property Casualty Insurers Association of America, says the association was “pleased” that the NAIC has selected such an extraordinary public servant with deep expertise in insurance, both as a regulator and as a longtime insurance professional.

Sampson says Nelson's experience as an insurance company executive, regulator and governor gives him unique qualities, experience and credibility for this position.

“Nelson has been a proven, successful leader in the private markets, and in the public arena, in building consensus to help consumers. He has a deep understanding of the state-based U.S. regulatory system and how successful it has been in serving insurance consumers,” Sampson says.

“As the NAIC faces complex issues of global and national regulatory convergence, his experience and background will be vital in navigating the landscape,” says Sampson.

Special Reports /

Industry Applauds Nelson Selection at NAIC

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