Midwest Politicians Work as Insurance Advocates

Three individuals who have worked in the insurance industry and now practice politics in the Midwest — Indiana State Representative Matt Lehman, Michigan State Senator David Robertson and U.S. Congressman Tom Latham of Iowa — all say their insurance backgrounds have allowed them to serve as insurance advocates for the consumers and businesses in their states.

Representative Matt Lehman – 79th District, Indiana

“Insurance is my world,” said Indiana state Rep. Matt Lehman, who started his insurance career after selling a car to the owner of Indiana-based Bixler Insurance Agency back in 1991. He was later recruited by the owner to work for his agency and, eventually, Lehman bought out his recruiter.

Today, he still sits at his insurance desk when not in Indianapolis representing House District 79, which includes Adams County, eastern Wells County and southern Allen County. He balances his insurance career and political life with the help of what he describes as is his supportive staff and technology.

Lehman has put his insurance knowledge to use as chairman of the Indiana House Insurance Committee, which has worked on bills prohibiting credit scoring on the renewal of personal insurance policies; adding specific requirements to certificates of insurance for property, operations or risks located in Indiana; and commissioning a study to make recommendations about the establishment of a health benefit exchange in Indiana to name a few.

“I want to make sure they are laws [committee members] understand,” Lehman said. “Insurance can be very complicated. I think having people there that understand it is actually in the best interest of the public.”

Lehman thinks he has also become a better agent since joining the Legislature because he sees the process and why certain laws are enacted and how they really work. This has helped him work better with constituents and clients alike.

“I feel like, especially regionally here, it’s given me a little bit of a platform to be an advocate for people that do have problems or maybe some issues with carriers,” he said.

He has also been able to assist colleagues who need help understanding bills having to do with insurance and what they will mean for constituents. But that doesn’t mean everyone considers him an expert. Lehman recounted an interaction with one of his carrier representatives who didn’t know he’s in the Legislature and chairs the House Insurance Committee: “The person said, ‘Well, I don’t think you understand insurance law.’ I said, ‘Ma’am, I make insurance law.'”

Lehman said because he is still a practicing agent, he is careful to avoid any conflicts of interest and will recuse himself in situations that could be viewed in that manner. “The state’s got some very clear conflict of interest requirements. I take that very seriously. I look at every bill through that. Really, what it comes down to is, will this benefit me personally?”

Lehman began his career in politics as a councilman for his county, eventually moving into the role of president of the council. In 2008, once his three daughters had grown up and the legislative seat for his district was to be vacated, Lehman decided it was the right time to run.

“I was one of those kids who loved politics since the time I was little. I mean I watched election returns and every four years when there was a presidential election it was like the Super Bowl at our house; I’d get maps out — my parents thought I was an odd kid,” he said. “I just have always loved the political process. I love the history of it. As I got older, I said ‘I want to do something. I want to try to make a difference.'”

Now, he is focused on how he can help his constituents, including giving them a better insurance experience.

“I’ll tell you upfront there are a couple of things that are happening in the industry now that do give me some concerns,” he said. “We see a big emphasis on credit scoring and I don’t necessarily like that. I think you are also seeing a big move to telematics … we are moving to more of an electronic data gathering of information. … Any time you collect data you have to be very concerned with how that’s going to be used and held and processed.”

Lehman said as both an agent and a politician he knows it is his job to educate the public and lawmakers about these issues and what they mean. One particular topic he has been called upon to assist with has been the Affordable Care Act (ACA).

It has been a challenge to educate people, Lehman said, not just on the terminology and details but on what the ACA’s impact will be on the state’s insurance business.

“As much as you want to applaud and say, ‘Hey we are giving everybody coverage,’ I think we’re starting to limit the number of markets available and competition. Eliminating competition is never good,” he said.

Lehman said he wishes more agents would get involved with the political process, either locally or through insurance associations. This is especially important, he said, considering the continued increase in industry regulations.

“I’d love to see more people that are in the insurance business in the legislature,” he said. “I think insurance and politics are a good fit. I encourage anyone to get involved with the process and find out how you can make a difference because this is the industry we live in. This is where we go to work every day. It does make me feel good knowing that I’m part of the change for the good, both for the consumer and for the industry in Indiana.”

State Senator Dave Robertson – 26th District, Michigan

The son of Scottish immigrants, Sen. Dave Robertson said he has seen the “American Dream” come true. After immigrating to the United States in 1956, Robertson’s father worked for General Motors in Michigan for 30 years. At the age of 24, Robertson’s love for the state and country, inspired by his parent’s own story, helped determine his path into politics.

In his political capacity, Robertson has worked on insurance issues that affect the recovery of Michigan’s industries. As an insurance agent, he has worked with those in the auto industry and other businesses in the economically hard-hit areas of Flint, Mich., to reduce their insurance costs and keep their businesses protected.

“Commercial lines have been ferociously competitive the last few years and agents are being required to do more underwriting. There is a great deal more they are called upon to do in understanding products and customers’ needs,” he said.

Robertson’s political career began in local government, and he unsucessfully ran for a seat in the Michigan House of Representatives in 1988. In 1990, Robertson ran again and this time was elected to represent the 51st District of Genesee County.

In 1992, redistricting knocked Robertson out of the House. He later secured a position on the County Board of Commissioners, but realized he needed additional income to augment his county commission salary. So in 1998, he joined the Al Bourdeau Insurance Agency, an 85-year-old family-owned property/casualty firm based in Flint with offices in five other cities in the state.

In 2002, he ran again for the Michigan House and won, representing the areas of Grand Blanc, Fenton, Mundy, Atlas and Argentine, Linden and Goodrich.

“I want to give credit to Bob Bourdeau for being an enormous supporter of me … not only as a candidate for office, but he supported me personally with an occupation,” said Robertson.

Although Robertson didn’t practice insurance during his time in the Michigan House, he did serve as vice-chair of the House Insurance Committee.

After Robertson left the Michigan House in 2008 he returned to the Al Bourdeau Insurance Agency, where he stayed until 2010, when he began his successful run for the Michigan State Senate. Robertson now represents the 26th District of Michigan, which includes Genesee and Oakland Counties. He also serves on the Michigan Senate Insurance Committee.

“The fact that I had served as an agent with the agency prompted my interest in serving on the Insurance Committee and I think that experience has helped me in dealing with the insurance issues that have come before us,” Robertson said.

One of those issues has been the high-profile and controversial topic of using credit scoring in calculating car and home insurance premium discounts in Michigan. Recently, Robertson co-sponsored legislation to adopt the National Conference of Insurance Legislators (NCOIL) model on credit scoring for insurance purposes in Michigan.

“Having had the experience in the agency informs my judgment from a policy standpoint, and I understand the human impact of the cost of insurance and the goal of the state to keep insurance affordable so that people can purchase it and be properly covered. It helps me, both as a citizen and as a legislator, to have had that experience,” he said.

Robertson said his experience as an insurance agent has also helped his relationships with both constituents and clients.

“I think both occupations require some people skills and a genuine concern for people and a demonstration of the fact that you care about people as human beings,” Robertson said.

When he was an agent he really enjoyed working with people and educating them about the value of insurance.

“Obviously with … the challenges the area has had in terms of employment and the loss of auto jobs, making people understand that it’s important for them to maintain their insurance and that the insurance markets will actually reward folks with lower rates and better coverage if they simply maintain continuity of insurance over time,” he said. “I found it rewarding to have that opportunity to explain to folks and really protect them from risk. That was a day-to-day occurrence.”

He believes now the insurance industry can play a vital role in Michigan’s economic recovery — whether it is through jobs or cost savings to its citizens.

“I want to restore Michigan’s prosperity and I think we are on the way,” he said. “We want insurance companies to have a competitive market here in Michigan and we want them to view Michigan positively. We want good paying jobs for our citizens and good products to be sold.”

U.S. House Representative Tom Latham – Iowa

U.S. Representative Tom Latham’s insurance career ended in 1976 — almost 20 years before his political career began in 1994 — but he said his experience in the industry has helped him with issues in Washington and Iowa like crop insurance, Iowa mutual insurance company taxes, and the Affordable Care Act.

However, Rep. Latham said he really credits his insurance career with giving him experience in helping people.

“[It] helped me technically in terms of knowing the industry and the cycles it goes through financially and tight or loose underwriting,” he said. “But the biggest thing I learned in insurance that compares to what I do now is the service. The insurance agency is basically selling a service and you get a great satisfaction helping someone who experiences a loss. It is the same with Congress and giving constituents assistance and helping them.”

Latham began his insurance career as manager of an insurance agency within a community bank in Colorado. He then participated in a training program with The Hartford and was transferred back to his home state of Iowa where he continued as a “special agent” for two years.

Latham left the insurance business because he had an opportunity to run his family’s seed company, but he said he really enjoyed working for a small agency and later with The Hartford.

“Sales are sales no matter what the product is. I had a great opportunity to go home and work for my family business so I took it — but I loved the insurance business,” he said.

In the U.S. House, Latham said he focuses largely on agricultural needs and making sure crop insurance is available to Iowa farmers. “We have several large crop insurers in Iowa and it is a major employment issue here in the state. I have to make sure the policy is right so those companies can be successful and farmers can do their business,” he said.

Latham said it is important for those in the insurance industry to get involved in politics through whatever forum they choose. “The biggest thing [insurance professionals] can do for the industry is to have a very strong voice and follow-up with their representatives and be involved in the process,” he said.

Listen to podcast interviews with Rep. Matt Lehman and Sen. Dave Robertson on IJTV, https://www.insurancejournal.tv/.