Just when you thought it was safe to go into the water, here’s one more thing to think about now that the election is over: How will the newly elected politicians across the U.S. affect my insurance premium? Even more generally speaking, which governing style or philosophies — Democrats’ or Republicans’ — are better for my insurance premium? Does voting one way or another, whether it is local or national, have an impact on my insurance premium?
In a word, yes. Participating in your local, state and federal elections does have an impact on your insurance policies, not only in the premium, but in the availability. Not only that, but election results have an impact on the types of policies you have to choose from, the insurers that offer coverage, where they are and more. Let’s look at how each political party tends to lean, and remember, these are general examples, not concrete methodologies. You can watch my video about this, too.
Republicans vs Democrats on insurance
The folks on the right stand for deregulation. They tend to advocate for reducing regulations and ensuring insurance companies greater flexibility in product offerings and pricing strategies. They also lead tax reforms that benefit insurers, such as the Tax Cuts and Jobs Act of 2017. The elephants in the room also like the idea of making Medicare more of a private product rather than one that the feds control. Lastly, there is a history of Republican support for tort reform, which could limit litigation costs and liabilities for insurers.
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OK, time to see how the donkeys measure up. Democrats were largely responsible for the implementation of the Affordable Care Act, aka Obamacare. They also want to expand coverage for Medicare, arguably so anyone wishing to participate could. Democrats also tend to have policies that aim to stabilize insurance markets through regulations, focusing on non-discriminatory practices and ensuring a level playing field. They are also responsible for the Consumer Financial Protection Bureau (CFPB), which has enhanced oversight of financial products, including insurance products.
Karl is an insurance agency owner, insurance expert witness in state, federal and criminal courts, and radio talk show host. For more than 30 years, Karl has helped consumers understand the complex world of insurance. He provides actionable advice and distills complex insurance concepts into understandable options. He appears regularly in the media, offering commentary and analysis of insurance industry news, and advises lawmakers on legislation, programs and policies.
Whew, OK, so we have a ton of stuff that those on both sides of the aisle have done. But wait, you were asking which political party is responsible for your insurance premium going up, going down or your policy being renewed or canceled. Let me provide a little more detail from each side before answering that direct question.
Who the insurance commissioners are
The department of insurance or finance in each state of the U.S. has some form of insurance commissioner. This is the individual most directly responsible for how insurance products are handled in your state. The following states have an elected insurance commissioner: California, Delaware, Georgia, Kansas, Louisiana, Mississippi, Montana, North Carolina, North Dakota, Oklahoma and Washington. Of all those states, only California, Delaware and Washington have insurance commissioners who are affiliated with the Democratic Party. Governors appoint the commissioners of the remaining states, so it’s likely that those commissioners are affiliated with the same party that holds the governor’s office.
Let’s have a peek at auto insurance premiums. Of these 11 states, the most expensive average premium can be found in Louisiana, a Republican state. But guess what? The least expensive state for auto insurance on average is North Dakota, also a state with a Republican insurance commissioner. Interesting, but not entirely useful for our purposes.
How about availability? If we look to see of these same 11 states which have the most insurance companies offering policies, that’s useful in our quest to see which political party works best for the insurance industry, right? Well, turns out that California lists 115 active insurance companies, the fewest, and Washington has 125, the most. And darn it, both of those states have Democratic insurance commissioners.
How satisfied are people with how their claims are handled?
How about claims? We purchase insurance, and if we have a claim, we want it handled. So let’s consider claim-satisfaction scores. Well, shockingly again, we see California with the highest score of 876 out of a possible 1,000, and Washington at 874 out of a possible 1,000. Both again, Democratic-leaning commissioners.
OK, how about overall consumer reporting on the best states, insurance-related included. Well, according to the 2024 U.S. News & World Report Best States Rankings, Utah holds the top position, and Louisiana ranks last. Both are Republican insurance commissioner states.
So where does this leave us? I’ll tell you precisely where it leaves us. It leaves us with no clear winner. Both Republican and Democratic insurance commissioners, elected by each state, can take up both the top and bottom spots when it comes to all of these metrics measured. Top and bottom! How can that be? We can only take away from this the fact that there is no political affiliation that is better than another when it comes to insurance regulations and how those can affect your insurance experience.
Wait, maybe we are on to something. Is it possible that neither the Republican Party nor the Democratic Party works perfectly or has all the right answers?
Want to learn more about insurance? Visit KarlSusman.com.
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