IA editors and Big “I” leaders round up the year’s biggest stories for the independent agency system.

Google Compare fails: Google Compare announced its shutdown early last spring, stating the “service itself hasn’t driven the success we hoped for.” The announcement sent shockwaves through an industry that braced for disruption from Google as soon as the tech giant launched Google Compare in 2014. But although the company’s rapid withdrawal from the market shows agents there’s still consumer demand for human interaction within the insurance experience, there’s no guarantee that Google won’t be back for more—and in the meantime, plenty of other disruptors are still vying for space in the insurance industry.

Lemonade launches: Speaking of, 2016 marked the long-awaited launch of Lemonade, which markets itself as “the world’s first peer-to-peer insurance company.” Through an entirely mobile process, the company offers policy pricing starting at $35 a month for homeowners and $5 a month for renters policies for “equivalent” coverage of national p-c carriers. Lemonade also claims to reduce costs by returning unclaimed money during its annual “giveback,” in which it donates underwriting profit on the customer’s behalf to a charitable cause of their choice.

Last week, Lemonade announced it has filed for a license in 46 states and Washington, D.C. in addition to New York, where it was licensed earlier this year. But is Lemonade the great disruptor? Many in the industry are skeptical.

2016 election makes waves: The outcome of the 2016 election has created a significant shift in power in Washington, D.C., with the prospect of major legislation impacting independent insurance agents in the years to come. For the first time since the 2008 election, one party will control both chambers of Congress and the White House.

With this new power shift, the Big “I” expects that repealing and replacing the Affordable Care Act (ACA) will be a top priority in 2017. This will likely require a lengthy transition period and perhaps a delay while Congress and the Administration work on legislation to replace the law. Replacing the ACA will also require some bipartisan support in order to pass the Senate. The Big “I” also expects the Trump Administration to prioritize tax reform, which the Big “I” supports as long as any proposal fairly addresses individual rates for small business pass-through entities along with corporate rates.

Delay for the DOL overtime rule: In November, the Big “I” scored a legal victory when a federal judge delayed implementation of the Department of Labor (DOL) overtime rule. More than 55 business groups and 21 state governments sued the DOL earlier this year, and the Big “I” is the only insurance trade association involved in the lawsuits. The delay means the incoming Administration and Congress now have more options for rolling back or amending the rule, since it did not take effect on Dec. 1 as planned.

Fiduciary rule looms: The Big “I” also expects that Congress and the new Administration will seek to delay, stop or amend the DOL fiduciary rule, which is set to take effect in April 2017. The regulations extend the fiduciary standard of care to all investment professionals that serve qualified retirement plans and rollovers to IRAs, and would change the current suitability standard for registered reps.

NFIP reauthorization gains traction: Throughout 2016, the Big “I” was at the forefront of policy discussions surrounding flood insurance. In addition to testifying at the first flood insurance hearing of 2016 before a U.S. House of Representatives committee, the Big “I” played an integral role in laying the groundwork for the September 2017 NFIP reauthorization. Last month, the House Financial Services Committee Republican leadership released a set of draft principles as a roadmap for reauthorization. The Big “I” believes that these principles are a reasonable starting point but is concerned about a proposal to phase out some policyholders from the NFIP.

Insurance regulation in the spotlight: This year saw numerous legislative proposals to install stronger procedural “checks” for federal officials in international insurance negotiations and support state insurance regulation. This fall, the House Financial Services Committee passed the CHOICE Act, by Rep. Jeb Hensarling (R-Texas), which is expected to serve as a template for financial services reform in 2017—and could include efforts to change the structure of the Federal Insurance Office.

NARAB moves forward: In 2016, after a lengthy process, the White House finally submitted some candidates for the NARAB board of directors—including a Big “I” agent and national board member, Angela Ripley of Maryland—to Congress. A 13-member board of industry members and state regulators will run NARAB. Once the President appoints the board members, the Senate must confirm them. Unfortunately, the Senate failed to confirm the slate of nominees before adjourning, which means the new Administration will have to resubmit the nominees to the Senate next year.

Dave Evans is a certified financial planner and an IA contributor. Katie Butler is IA editor in chief. Margarita Tapia is Big “I” director of public affairs. Jacquelyn Connelly is IA senior editor.