When the Big “I” Speaks…

A well-known television commercial from the 1980s plugging a brokerage firm famously stated: “When E.F. Hutton talks, people listen.” Today’s version of this old tagline might go like this: “When the Big ‘I’ talks, Congress listens.”

This summer, the Big “I” has been front and center as important Congressional panels have considered the future of insurance regulation, natural-disaster legislation and the federal antitrust exemption for the business of insurance. Thomas Minkler, Big “I” national Government Affairs Committee chairman, testified twice in the halls of Congress on insurance regulatory reform. Additionally, Big “I” President-Elect Alex Soto, CPCU, joined Mississippi Big “I” agent David Treutel to testify in support of comprehensive natural-disaster legislation. And the Big “I” also submitted testimony, at the request of Congress, on the continued relevance of the McCarran-Ferguson Act.

“The fact that both houses of Congress repeatedly ask for Big ‘I’ input shows that our nation’s elected leaders recognize us as the voice and advocate for independent agents and brokers in Washington, D.C.,” says Big “I” CEO Robert A. Rusbuldt. “They recognize our knowledge and our credibility and want to hear what agents and brokers have to say about the issues that affect their businesses, their customers and our industry.”

Minkler testified July 11 before the Senate Banking Committee in support of targeted “federal tools” legislation, and in opposition to federal regulation, to enhance and reform the existing insurance regulatory system. It was an encore performance for Minkler on this issue, as he also testified June 21 before the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises in support of H.R. 5637, the bipartisan Nonadmitted Reinsurance Reform Act. The legislation, introduced by Rep. Ginny Brown-Waite (R-Fla.) and Rep. Dennis Moore (D-Kan.), would increase uniformity in surplus lines and reinsurance marketplace regulation while preserving state oversight.

On both occasions, Minkler made the case for federal reform of the state-based regulatory system, as opposed to federal regulation. “A new, federal insurance regulatory system would eventually result in the dismantling of the inherent strengths of state regulation, namely diversity, geographical uniqueness, innovation and responsiveness to consumers,” Minkler noted.

On June 28, Soto testified before the House Subcommittee on Housing and Community Opportunity in support of H.R. 846, the Homeowners’ Insurance Availability Act, which would allow private insurers to purchase, at auction, reinsurance contracts directly from the U.S. Treasury to cover catastrophic natural disasters. He noted that the time to act is before a disaster—a point later hammered home by Treutel, who testified about the devastation of his agency by Hurricane Katrina.

“It is simply not enough to say that the private sector can handle this risk, when it does not, and in reality, consumers face severe availability and affordability issues,” Soto testified. “Turning our back on policyholders who need coverage is never a recipe for a stable economy and unacceptable to our members and customers.”

Many other Big “I” members have testified recently before Congress, including President Bill Stiglitz on reform of the National Flood Insurance Program, Iowa Big “I” member Norm Nielsen on the Federal Crop Insurance Program. When insurance issues come before Congress, the Big “I” is in the room, advocating for you.

Cliston Brown (cliston.brown@iiaba.net) is Big “I” director of public affairs/media relations.

Federal Affairs Team Expands Reach

Thomas C. Koonce has joined the Big “I” Capitol Hill staff as its new assistant vice president for federal government affairs.

Koonce, previously the manager of government relations for Accenture LLP since May 2005, is also an attorney with extensive Capitol Hill and private sector experience. He joins two fellow assistant vice presidents, Brendan Reilly and John Prible, and Charles Symington, senior vice president of government affairs and federal relations, in the Big “I” Capitol Hill office.

Prior to working at Accenture, Koonce was legislative director for Rep. Brad Miller (D-N.C.) from 2003- 2005, where he oversaw Rep. Miller’s legislative agenda and served as the congressman’s top aide on House Financial Services Committee matters. Prior to that, Koonce worked on the Democratic staff of the House Judiciary Committee. It was his second stint on Capitol Hill, where he previously staffed Rep. Stephen Neal (D-N.C.).

“Koonce has great experience in two of the Congressional committees where the bulk of our issues are reviewed. His contacts, his experience and his talent will be tremendously beneficial in advancing the legislative goals of independent insurance agents and brokers in the halls of Congress,” Symington says.

“The Big ‘I’ has a great bipartisan team in place to represent our members in the White House, the agencies and departments, Congress, the NAIC, NCOIL, the NGA, think tanks and other venues where issues of importance to independent agents and brokers are considered,” says Big “I” CEO Bob Rusbuldt.