What Impact Does Politics Have on Insurance?
Some governors choose their state's insurance commissioner, while other states elect theirs, and that person has power over insurance issues, including rates.

If you feel as if your political view is encroaching on more and more of your life and this troubles you, perhaps stop reading now. If instead you’d like to find out how politics plays a significant role in the premium you pay for your insurance policies, then you guessed it, we’re off to the races.
Let’s start out with a little history. Historically, the position of insurance commissioner was one that was appointed. Although that may sound like you have little choice in the matter, the appointee is the governor of the state. All states in this country elect their governor. Therefore, whoever takes the role of the state’s insurance commissioner is directly connected to who resides in the governor’s mansion.
The insurance commissioner will likely share the same values, both social and fiscal, as the governor and be a member of the same political party. So you should expect the state’s insurance commission to tackle its job in much the same way as the governor. The short lesson here: Do your research and vote wisely.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
There's another way
But what if I told you that 26% of the country has a more direct approach? Let’s find out what that is.
The residents of California, Georgia, North Carolina, Washington, Louisiana, Oklahoma, Mississippi, Kansas, Montana, Delaware and North Dakota — 11 states with 26% of the entire United States population — have a direct hand in who their state’s insurance commissioner is. “How can this be?” you may ask. Simple. They elect the insurance commissioner just as they would elect any other state official.
Yes, sirree, that means people running for that office put out political ads and billboards where they make promises about how they will tackle the state’s most complex insurance matters. They villify the “evil private insurance industry” and profess that only they and they alone have the knowledge and willpower to protect you and lower your rates.
Perhaps I am a tad jaded. However, in my 52 years on this planet, I have come to not entirely trust the promises from people whose names plaster the ballot. This will no doubt come as an entirely mind-bending concept, but sometimes they say one thing to get elected and then do the complete opposite.
In these 11 states, voters must really dig in, take the time to research and find out what their potential insurance commissioner is about. Don’t simply look at their party affiliation, as many will do (the CliffsNotes version of voter research). This may be one of the most significant positions you vote for, next to the president of the United States, and almost certainly the one who will have a financial impact the fastest.
What an insurance commissioner does
The state’s insurance commissioner has a boatload of responsibilities, including regulating the insurance companies it permits to do business in its state, protecting consumers, approving rates and underwriting guidelines, licensing agents and brokers, financial oversight, market conduct examinations, consumer complaints, enforcement actions, education and outreach and more.
If you look at a state like California, for example, the nearly 40 million residents create an economic footprint that is the fifth largest on the planet. Now, imagine how important it is to have someone knowledgeable and experienced handling that laundry list of activities. It is anything but trivial, and unfortunately, it tends to be one of those elected positions that does not generate sufficient public attention, considering its importance. On top of that, the election time can fall outside of the presidential election, when voter turnout is always lower.
Still unimpressed? The insurance industry in this country represents over $1.32 trillion in premiums paid as of 2021, employs just under 3 million and is comprised of almost 6,000 insurance companies. Insurers also hold a combined $9.5 trillion in invested assets. Face it, people: The main portal to the insurance industry is your state’s insurance commissioner, and you need someone who’s up to the task.
This is a coveted position of power
With so many changes happening that can have an impact on the insurance industry, the state insurance commissioner is a coveted position of power. In states where the governor hands out the power, you can bet there are many discussions occurring and promises being made. In the states where the residents choose who will lead, you can be sure there are likely more promises and deals being made.
This is serious business. It is incumbent on you to take your time to find out who you think will best conduct the marching band for the insurance business in your state. Get involved. Ask questions. Demand answers. Take notes. Remember. And finally, vote.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Karl Susman 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.
-
Baby Boomers vs Gen X: Who Spends More?
Baby Boomers and Gen X are guilty of spending a lot of money. Here's a look at where their money goes.
-
Retire in Finland and Live the Nordic Dream
Here's how to retire in Finland as a US retiree. It's ideal for those who value natural beauty, low crime and good healthcare.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?
If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or Relocate
Homeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and Friends
What starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
What the HECM? Combine It With a QLAC and See What Happens
Combining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
721 UPREIT DSTs: Real Estate Investing Expert Explores the Hidden Risks
Potential investors need to understand the crucial distinction between a REIT's option to buy a Delaware statutory trust's property and its obligation.
-
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid Off
Life insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.
-
My Professional Advice: When It Comes to Money, You Do You
This is how embracing the 'letting others be' and 'learning to surrender' mindsets can improve your relationship with money.
-
Direct Indexing Expert Explains How It Can Be a Smarter Way to Invest
Direct indexing provides a more efficient approach to investing that can boost after-tax returns, but is it right for you?