The Power of the PAC

The U.S. Congress is constantly considering legislation that can potentially affect independent agents and brokers on issues including taxes, regulation, licensing, federal programs and much more. The success of the independent agency system today and down the road is largely dependent on staying active in the political process and encouraging others in the industry to do the same. Political action committees (PACs) are one of the quickest and most effective ways to become engaged in this process.

InsurPac is the federal political action committee of the Independent Insurance Agents& Brokers Association (the Big “I”). It is the largest property-casualty insurance industry PAC in the nation, and is one of the reasons the Big “I” is routinely rated as a top lobbying group in Washington, D.C. InsurPac distributes 100% of its voluntary agent donations to U.S. senators, representatives and candidates for federal office. In making those disbursements it does not look at party affiliation; rather, it supports those officials who have been advocates and supporters of the independent agency system. As a result, the Big “I” and InsurPac have an impressive bipartisan track record in Congress and on the campaign trail. Consider the following:

• In the 2007–2008 election cycle, InsurPac distributed $1,631,500. Of the 241 races it supported, 222 won for a 92% victory rate.

• In the 2005–2006 election cycle, InsurPac distributed $1,542,250. Of the 237 races it supported, 206 won for an 87% victory rate.

While victories such as these are impressive, they are not nearly as important as the relationships that are developed via InsurPac. Hundreds of fundraising events happen each week in Washington, D.C., benefitting members of the U.S. Senate and House. Big “I” federal lobbyists attend fundraisers every day, carrying the independent agent banner and establishing relationships with key legislators and their staff. Just as an agent values his or her clients and works with them to develop relationships, the Big “I” Capitol Hill team works to maintain relationships with elected officials. While these relationships obviously don’t guarantee votes, they do provide opportunities to meet with key decision makers at the appropriate time and educate them on the agent perspective.

The importance of PACs in the political and legislative process cannot be underestimated. The trial lawyers have used their $5 million PAC to stop meaningful tort reform. Realtors have used their $8 million PAC to raise their presence and become one of the most influential interest groups. The National Association of Insurance and Financial Advisors have used their $2 million PAC to push for federal regulation of life insurance.

The Big “I” membership has always prided itself on political engagement, and the continued growth of InsurPac indicates the trend is not slowing down anytime soon. The 2008 calendar year was the eighth consecutive year that InsurPac grew, and it is on pace to set yet another record fundraising year in 2009. As of mid-October, InsurPac had already raised $830,000 and was within striking distance of the million-dollar mark.

The Big “I” continues to be one of the most well-respected associations in Washington and it’s in large part due to the power of InsurPac. This political clout is apparent in the relationships the association and it’s lobbyists have on Capitol Hill, the reputation of the association as a whole, and the many times they are consulted by the administration and invited to testify before Congress on a variety of industry issues.

Margarita Tapia (margarita.tapia@iiaba.net) is Big “I” director of public affairs.


InsurPac VIP Reception

The 2010 Legislative Conference in Washington, D.C. will feature a new VIP event for major InsurPac donors who individually contribute $1,000 or more. The ‘by invitation only’ reception is scheduled to take place in March in the Big “I” Capitol Hill office and will feature prominent members of Congress.

-M.T.