Industry Reacts to Dodd Decision

The insurance industry is offering praise for retiring Senate Banking Committee Chairman Christopher Dodd (D – Conn.), who announced last week he would not seek reelection next year.

“Senator Dodd’s leadership in the Senate has been instrumental to our industry over the years. Leigh Ann Pusey, president of the American Insurance Association (AIA) said in a statement. “He has consistently delivered for the people of Connecticut and skillfully navigated numerous important issues affecting the property-casualty industry, including those companies anchored in his home state, with a sense of commitment, objectivity, and fairness.  

Pusey cited Dodd’s leadership on areas such as the reauthorization of the terrorism risk insurance program, the passage of Gramm-Leach-Bliley Act and, most recently, financial services regulatory reform.  “He has always been a reasonable legislator and he will leave the Senate with a significant record of achievement. Senator Dodd will always remain in high regard by the property-casualty insurance sector. ”

Robert Rusbuldt, president & CEO of the Independent Insurance Agents & Brokers of America, praised Dodd’s labors on behalf of the Terrorism Risk Insurance Act (TRIA). “His legislative efforts in 2001 as the primary Senate influence behind passage of TRIA could not have come at a more critical time for our country and economy,” Rusbuldt said in a statement.  “Sen. Dodd never lost faith in the legislation and answered the call on several occasions to help get this legislation passed when prospects for bill passage appeared dim.”

Yet, it was Dodd’s high regard for the insurance industry, in particular his 2009 effort to help executives at American International Group retain their bonuses, that caused his popularity to take a hit in his home state and played a part in his decision not to seek reelection.

“The insurance industry is an integral and major part of the Connecticut economy and Sen. Dodd has a large number of independent agents and brokers among his constituency,” Rusbuldt said. “However, his leadership transcends state lines and benefits small business independent agents and brokers nationwide.”