NAII Founders Wanted Voice in Creating Public Policy

Carrying on with business after the tragic terrorist attacks on Sept. 11, the National Association of Independent Insurers (NAII) will hold its 56th annual meeting in New Orleans Nov. 4-7 as scheduled.

More than 500 NAII member company CEOs and 800 reinsurance executives, intermediaries and brokers are expected to attend the meeting, to be held at the Sheraton New Orleans Hotel.

After passage of the McCarran-Ferguson Act in 1945, a group of insurance
companies got together after realizing the industry needed to have a voice in creating public policy. This group representing some 39 mostly small regional companies also wanted to be independent of the rating bureaus, a desire that helped shape the name of the organization they founded. The result of that gathering was the formation of the National Association of Independent
Insurers.

Much has changed about the insurance industry during the ensuing 56 years, but NAII’s founding principles remain firm. NAII is first and foremost an advocate for its members, particularly in the political and regulatory arenas. The organization continues to believe that state regulation is the best form of regulation for the industry. We stand to support those policies embraced by our members.

NAII, now comprised of both large and smaller companies, is the nation’s largest full-service property and casualty trade association, representing more than 690 members. Its mission is to advocate its members’ public policy positions at four levels: Congress, state legislatures and regulatory agencies, federal and state courthouses, and the public arena. It mission is also to provide its members with targeted industry information.

“The proverbial adage strength in numbers rings true at NAII, for no insurance company can solely create the type of influence, wealth of information and networking opportunities that the NAII provides,” said Jeffrey Brewer, NAII Public Affairs. “Our greatest value to members is the ability to save companies time and money by creating individual and collective victories through a healthier legislative and regulatory environment. Members benefit from the advocacy, knowledge, networking and value that NAII consistently offers.”

NAII advocates its members’ public policy through a network of highly skilled staff lobbyists as well as local retained counsel in every state. Expert media strategists are assigned to each state, working to mold opinion with the press, policymakers and the public through thousands of press clippings and hours of broadcast time.

Ideas and strategies for advocacy work are developed in NAII’s suburban Chicago headquarters and regional offices in Atlanta, Austin, Sacramento, Seattle and Washington D.C. The NAII Political Action Committeethe first and largest insurance trade association PAC-and EM:POWER-NAII’s computerized grassroots network-are other advocacy tools.

NAII members receive customized, targeted information and analysis through a variety of formats. The association’s website, which links members to a wealth of information, provides an extremely valuable tool that allows members to track legislation and regulations, and search for information by line of business or subject. Information is also delivered through more than 60 publications, including daily legislative and regulatory alerts, newsletters and insurance department communications, as well as in-depth demographic and statistical analysis.

In particular, the Legislative Reporting Service tracks thousands of bills and regulations each year, reporting on their entire life cycle from proposals to court tests to enactment. This service analyzes and interprets effects of bills and regulations on insurers-saving members the cost of noncompliance. Besides publications, knowledge is transferred through seminars, where industry experts editorialize and clarify issues, and committee meetings that facilitate information sharing among members

NAII also creates a peer-to-peer information exchange through its 30 standing committees and 11 annual seminars, covering insurancespecific and general business topics. Statistical data is offered for 17 property-casualty lines through NAII’s Independent Statistical Service agent, enabling subscribers to develop their own competitive pricing and easily satisfy statutory reporting requirements.

NAII member companies account for 33.8 percent of the industry’s total premium volume and dominate the industry’s total personal lines market at 43.9 percent. As a group, NAII members write every line of insurance for a combined total of $98 billion in annual premiums. Companies range in size from billion-dollar national corporations to multi-line regional groups to single-state and niche writers.

In October 2000, Steve Milne became chairman of the NAII Board of Governors. Milne is president and CEO of Erie Insurance Group, the 17th largest property and casualty insurance group in the nation, based in Erie, Pa. In addition to his affiliation with Erie Insurance since 1973, Milne has served the insurance industry as vice chairperson of the Insurance Institute for Highway Safety Board of Directors, as well as numerous committee leadership positions at NAII. Milne will relinquish his chairmanship at the annual meeting this November in New Orleans.

NAII Operations
NAII has a 35-member board of governors elected by the full membership. NAII policy is developed primarily by member involvement in through committees. There are seven board committees along with 30 standing committees. Member companies meet in committees and in regular or special state or regional meetings to discuss issues and develop a consensus.

Through NAII, membership companies develop new ideas, shape policy, learn industry trends, share strategies of success, create new business contacts, discuss issues and air concerns. NAII responds to issues facing the industry and also acts proactively to develop proposals on which the industry can take the initiative.

Among those issues important to NAII and its members:

• Regulation Modernization
• Privacy
• Producer Licensing
• Credit Reports
• Aftermarket Parts
• E-Commerce
• Workers’ Compensation Reform
• Fraud
• Bad Faith
• Class Action Reform

Topics Legislation Property Casualty