Insurance political contributors favor Republicans

Four of six top official recipients from the Midwest

Insurance-related contributors to this year’s midterm Congressional races are favoring Republicans 2-to-1 over Democrats while the overall total given by insurance interests appears down from two years ago.

According to the non-partisan Center for Responsive Politics, insurance political action committees and individuals in the industry had given a total of $22.8 million to candidates in House and Senate races as of Sept. 11, with 66 percent or $15.1 million of that going to Republicans.

Democratic candidates for federal offices have received about $7.5 million.

Overall, the industry’s contribution thus far to federal candidates is trailing 2004’s total, when insurance interests gave $36.3 million, CRP reports. CRP’s figures for the industry are based on data available from the Federal Election Commission as of Sept. 11.

But other industries are more than filling the gap as the CRP predicts this year’s federal election could cost about $2.6 billion by year’s end, making it the most expensive midterm election ever.

Compared to other groups, insurance ranks eighth in political giving, behind, among others, law firms, real estate, securities/investments and health care. Lawyers and law firms are responsible for the biggest sum — $89 million.

Top insurance contributors
Life and health insurance interests are well represented among the top insurance donors. According to the report, the top 10 contributors from insurance committees and individuals combined are AFLAC ($1.3 million); Blue Cross/Blue Shield ($1.1 million); National Association of Insurance and Financial Advisors ($964,000); Independent Insurance Agents and Brokers of America ($959,000); New York Life Insurance ($884,000); Massachusetts Mutual Life ($647,000); Metropolitan Life ($627,000); American Financial Group ($558,000); Liberty Mutual ($535,000); and United Services Automobile Association Group ($480,000).

Rounding out the top 20 are St. Paul Travelers ($430,000); American Council of Life Insurers ($417,000); General Electric ($404,000); Council of Insurance Agents & Brokers ($392,000); Zurich Financial Services ($381,000); Prudential Financial ($337,000); American International Group ($334,000); Property Casualty Insurers Association of America ($326,000); Cigna Corp. ($317,000); and Northwestern Mutual ($315,000).

Top recipients from insurance
CRP’s tally of top beneficiaries of insurance giving places two politicians not found together on many of the same lists in the top spots and a former insurance executive in the third position.

The top 10 recipients of insurance political donations (based on FEC data released Oct. 11) are Sen. Rick Santorum, R-Pa. ($416,000); Sen. Hillary Rodham Clinton, D-N.Y. ($340,000); Michael McGavick, Republican former Safeco Insurance executive running for Senate in Washington ($280,000); Sen. Ben Nelson, D-Neb., $262,000); Sen. Mike DeWine, R-Ohio ($253,000); Sen. John Kyl, R-Ariz. ($241,000); Sen. Joseph Lieberman, I-Conn. ($239,000); Rep. Nancy Johnson, R-Conn. ($229,000); Rep. Deborah Pryce, R-Ohio ($218,000); and Rep. Mark Kennedy, Republican Senate candidate in Minnesota.

Others top recipients of insurance monies include Sen. James Talent, R-Mo.; Rep. Earl Pomeroy, D-N.D.; Sen. Tom Carper, D-Del.; Sen. George Allen, R-Va.; Rep. Sue Kelly, R-N.Y.; Rep. Eric Cantor, R-Va.; Rep Tom Reynolds, R-N.Y.; Sen. Kent Conrad, D-N.D.; Sen. Olympia Snowe, R-Me.; and Rep. Jim McCrery, R-La.

CRP predicts that this year’s election for control of the House of Representatives and Senate will be the most expensive midterm election ever. The research group estimates that the candidates, national political parties and outside issue advocacy groups will spend roughly $2.6 billion by the end of 2006 to influence the 472 federal contests.

All candidates for House and Senate combined raised nearly $1.3 billion, as of Oct. 23. Candidates still in the running for House have raised, on average, about $760,000, while Senate candidates have raised $5.8 million (which includes money raised since the start of the six-year term in 2001). Incumbent senators have a 4:1 advantage over their current challengers, on average. House incumbents have out-raised their current challengers 7:2, according to the CRP analysis of FEC data.

Republicans are expected to retain their edge in fundraising. The CRP predicts that Republican interests — candidates, party committees and conservative advocacy groups — will spend $1.4 billion on this election. Democratic interests will spend $1.2 billion, the CRP projects. Business interests account for about three-quarters of all contributions, with ideological, labor and other interests making up the rest.

“The industries and interests funding the 2006 election have been big givers for years, and they’re building on their influence now. They’re making an investment they hope will pay off once the 110th Congress takes office in January,” Krumholz said.

CRP predicts that PAC receipts and spending will exceed $1 billion for the first election ever, reflecting the ever-growing influence of business, labor and ideological interests in federal politics. The percentage of PAC money going to incumbents is the highest it has been since 1990, based on 18-month figures.

The top donors this cycle, based on contributions from their PACs and employees, include the National Association of Realtors, the financial giant Goldman Sachs, the International Brotherhood of Electrical Workers union, telecom leader AT&T, the National Beer Wholesalers Association and the Association of Trial Lawyers of America.

“Most Americans would be surprised to learn the degree to which their elections are being financed by their real estate agents, electricians and the beer industry,” Krumholz said.

Source: Center for Responsive Politicswww.opensecrets.org.