State Farm Outpaces Other P&C Insurers in 2011 Lobbying Expenditures

NU Online News Service, June 5, 2:55 p.m. EDT

State Farm Mutual Insurance Co. spent more on lobbying than any other property and casualty insurance company in 2011, according to data released today by SNL Financial.

The data, which shows the top-10 insurers across life and health and P&C ranked by their 2011 lobbying expenditures, was based on information insurers are required to file with the National Association of Insurance Commissioners.

Four of the top-10 were P&C companies.

The data showed that State Farm, which ranked second overall on the list and highest for P&C, spent $7.03 million on lobbying expenditures in 2011, virtually the same amount in each year since 2008.

The second-largest political contributor amongst U.S. P&C insurance companies in 2011 was Nationwide Mutual, with contributions of $3.5 million. While second among P&C companies, Nationwide ranked fifth among insurance companies overall.

Third among P&C companies was Travelers (sixth overall), with $2.9 million; fourth among P&C insurers was Liberty Mutual (eighth overall), with $2.53 million in political contributions.

Data provided by SNL reveals that the U.S. Chamber of Commerce was a major recipient of the donations made by insurers. The issues on which it lobbies include tort reform.

Other large recipients of donations by property and casualty insurers include the Property Casualty Insurers Association of America, which received $4.05 million in contributions; ProtectingAmerica.org, which received $1.4 million, and the American Insurance Association, which received $690,000 in contributions.

ProtectingAmerica.org predominately deals with catastrophe issues. Its primary supporter is Allstate Insurance Company, whose contributions did not make the Top 10 list.

According to the data, the political contributions by State Farm and Travelers over the past four years have been consistent.

For example, State Farm's expenditures have grown at a 4 percent annual rate, compounded, since 2008. Travelers compounded four-year growth rate was 3 percent. Nationwide's growth rate was not available.

However, Liberty Mutual's contributions have dropped considerably since 2008, down 15.2 percent in 2011 compared to contributions in 2008, when the insurer spent $4.15 million.

Regarding its spending efforts, a State Farm spokesman says via email, “State Farm's change in lobbying expense basically mirrors the change in the industry average over the past four years. We insure more motorists and homeowners than any other company in the U.S. We are regulated in each of the 50 states and, increasingly, at the federal level. It is important we share our views with legislators and regulators who make decisions on issues that may impact our ability to serve the best interests of our customers.”