Insurance Industry Campaign Contributions Lean in Favor of Democrats

The insurance industry is spending more in this election cycle on Democratic candidates, a trend-breaking contribution pattern that puts Republicans behind for the first time since 1990.

According to statistics maintained by the Center for Responsive Politics, in the 2010 mid-term elections, Democrats have drawn 55% of insurance-related contributions, compared with 45% for Republicans -- though the election is still well over a year away. Numbers could shift before the cycle ends at year-end 2010. In recent years, it was often more likely to see Democrats barely claim 30 cents of each insurance-industry dollar given to campaigns.

"Oftentimes, people want to make sure they're on the winning team; Democrats are far and away the winning team today," said Dave Levinthal, director of communications for the center. "The very influential members of Congress right now -- and of course the White House -- have a D after their name. It's not totally surprising, even for an industry that donated so heavily to Republicans, that they would flip."

In 1990, the last time the Democrats enjoyed a majority of financial support from the industry, they were strongly in control of the 101st Congress, though President George H. W. Bush was in the White House. Even then, the Democrats brought in only 51% of the industry's contributions -- much less than it's on track to do this time.

The insurance industry is generally among the top 10 industries contributing to politicians, according to the center's statistics published at www.opensecrets.org. The center's numbers, showing the industry at $7 million in giving for the 2010 elections, represent a tally of individual contributors who work for insurance businesses and the political-action committees with insurance ties.

The largest of the insurance PACs right now belongs to Aflac Inc. (NYSE: AFL), which has contributed more than $800,000 in this cycle. Of that money, 59% has gone to Democrats. The largest association PAC, the committee run by the Independent Insurance Agents & Brokers of America, is bucking the trend, giving 53% to Republicans.

"Big I members are politically astute small business people who understand the importance of political activism, which has led to our PAC being the largest one in the property/casualty industry," said Charles Symington, senior vice president for government affairs, when asked about the PAC's giving. "We have a bipartisan PAC and support those members of Congress, whether they are Republican or Democrat, who support the independent agency system."

Other prominent associations who maintain PACs further demonstrate that the numbers can be inconsistent, based on the groups' particular interests: the National Association of Health Underwriters gives significantly more of its money to Republicans, while the National Association of Insurance and Financial Advisors and the American Council of Life Insurers give much more to Democrats.

So, who is getting the money?

The top three Senate recipients for insurance industry contributions -- all Democrats -- are Sens. Charles Schumer, D-N.Y., Chris Dodd, D-Conn., and Harry Reid, D-Nev., according to the center's research. And in the House, it's another trio of Democrats: Reps. Melissa Bean, D-Ill., Earl Pomeroy, D-N.D., and Barney Frank, D-Mass. All have played key roles in federal insurance matters.

The numbers for Democrats already were starting to trend upwards in the 2008 election cycle, when they claimed 45% of the insurance contributions. According to MAPLight.org, a site that studies the connections between campaign financing and legislative votes, three of the five top insurance-money recipients in the House then were Democrats. Two of those are members of the Blue Dog Coalition -- a group of fiscally conservative Democrats that has delayed health reform legislation with requests to reduce its cost.

Levinthal said it's not unusual for industries to shift -- unlike such organizations as the environmental and gun-rights groups, which are more tied to beliefs. "Industries like this that are less philosophical in nature will often ebb and flow with the fluctuations in power on Capitol Hill and the White House."

He said, however, that it's tough to draw a direct line between money and influence. "You can track the numbers, but oftentimes its more difficult to track the motivations."

Aflac Inc.'s companies have current Best's Financial Strength Ratings of A+ (Superior).