Agents Head for the Hill

In a few weeks, more than a thousand independent insurance agents and brokers will board trains, planes and automobiles headed to Washington, D.C., for the annual Big “I” Legislative Conference & Convention, March 3–5.

On March 4 they will spread out to hundreds of Capitol Hill offices to lobby members of the House, Senate and their staffs. During this annual pilgrimage, Big “I” members reiterate to our nation’s decision makers that independent agents are in every state and in every district and that they participate in the legislative process. Many offices look forward to the yearly updates from agent and broker delegations from their home states to discuss important issues that affect not just agents, but the consumers they serve and all small businesses.

The Big “I” Legislative Conference & Convention is the insurance industry’s best-attended, most effective legislative event of its kind. Discussions this year will focus on several issues that affect independent agents, including the economic challenges facing insurance agents and the industry, health care reform, tax reform, the National Flood Insurance Program (NFIP), numerous small business concerns and insurance regulatory reform. This year, the threat of an optional federal charter (OFC) will be on the table. Rep. Barney Frank (D-Mass.), chairman of the U.S. House of Representatives Financial Services Committee, has repeatedly said that the committee will take up the issue of an OFC in 2010. Chairman Frank has also said that H.R. 1880, The National Insurance Consumer Protection Act, introduced by Rep. Melissa Bean (D-Ill.) and Rep. Ed Royce (R-Calif.), will be part of the committee’s deliberations. While Chairman Frank has not formally taken a position on the issue, he has said that the arguments for federal regulation of life insurance and reinsurance appear stronger than that for property-casualty insurance.

Contrary to the bill’s supposed focus on consumers, the Big “I” believes that this legislation would damage the stable and healthy insurance marketplace to the detriment of agents and policyholders. This bill deregulates several areas that are currently overseen at the state level and sets up a system that would allow regulated entities to pick and choose their regulator. If OFC becomes law, consumers would be left vulnerable and the insurance market would be exposed to the same types of problems experienced by other sectors of the financial services industry.

The Big “I” continues to support modernization of insurance regulation through targeted federal legislation. A targeted approach would overcome state-level impediments to reform and build on, rather than dismantle, the states’ inherent strengths—diversity, geographical uniqueness, innovation and responsiveness to consumers—to meet the challenges of today’s financial services industry and a rapidly changing insurance marketplace. The Big “I” strongly believes that Congress should recognize that state insurance regulators have done an excellent job of keeping the p-c insurance market stable during this tumultuous time in U.S. financial markets and Congress should focus on targeted reforms of the state regulatory system that would make it more uniform and efficient.

The Big “I” will need all hands on deck at the legislative conference on March 4 to explain to members of Congress and other key decision-makers in our nation’s capital why independent insurance agents and brokers are strongly opposed to “command and control” regulation from Washington, D.C.


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

Destination D.C.

Join fellow independent agents and brokers on Capitol Hill during the Big “I” Legislative Conference & Convention, March 3–5.Inaddition to visiting lawmakers, highlights of the event include an in-depth issues briefing sessions, speeches by congressional leaders, a panel discussion with top insurance carrier CEOs and a state of the association address by Big “I” chairman David Daniel.

With more than 300,000members and an experienced, bipartisan government affairs team in the nation’s capitol, the Big “I” is well positioned to advocate for independent agents, but it takes everyone’s participation. The association wants to send a powerful message to Congress this year by having Big “I” agents meet with all 535congressional offices. With so many important issues on the table, now more than ever, it is important for agents from every state and congressional district to attend.

Big “I” members are the backbone of the p-c insurance market and on March 4you can deliver this message to your representatives in Congress. The next few months are critical and the Big “I” needs as many voices on Capitol Hill as possible to protect the industry against harmful legislation and to promote sound public policy.

-M.T.