The American Insurance Association spent more than $300,000 in lobbying the federal government during the second quarter of this year. Much of the lobbying effort was focused on disaster insurance and regulatory reform. The insurance organization has been pressuring legislators to pass laws that would make insurance more accessible to those in disaster prone areas. The money spent during the second quarter was not only spent to lobby the House and Senate, it also went toward lobbying efforts targeted at the Department of Treasury and Federal Reserve System.
The association lobbied on legislations concerning the affordability of both flood and earthquake insurance. This year has seen a large number of earthquakes and floods throughout the country, causing billions of dollars worth of damage. The major issue concerning most insurers is the fact that the majority of people throughout the U.S. do not have insurance policies protecting them from damage caused by such disasters. While many can receive appropriate coverage from federal programs, these programs are currently suffering from crippling debt, making their futures uncertain.
The insurer’s group has also been lobbying for the creation of a new bankruptcy option for states. The option will allow states to absolve themselves from federal debts that they cannot afford to repay. This would allow states to recovery from economic hardships more quickly, but would not help solve the inherent structural flaws faced by a great many states. The bankruptcy option was shot down by the Senate early in the year, but has begun garnering renewed support as financial issues continue to linger.