Auto Insurers' Political Donations: Who Benefits?

The insurance industry is a major contributor to federal election campaigns in the US, with individuals and PACs associated with the sector giving $120 million during the 2020 election cycle. This was a record for the industry, which has favoured Republicans over Democrats in every election since 1992. Auto insurance companies are a part of this, with Starr Companies, for example, spending more than $15 million on conservative groups from 2015 to 2016.

Health insurance companies and their donations to state-level campaigns

Health insurance companies, like many other businesses, maintain healthy relationships with state policymakers by contributing to state-level political campaigns. According to a report by Anne Bauer published on FollowTheMoney.org, four major health insurance companies—WellPoint, UnitedHealth Group, Humana, and Aetna—donated a combined total of $8.7 million to state-level campaigns in 42 states from 2005 through 2008. WellPoint was the largest contributor among the four, giving $4.3 million, followed by UnitedHealth Group with $2.2 million, Humana with $1.1 million, and Aetna with $950,717. These donations were primarily directed towards state office-holders, political parties, and ballot measure committees, with office-holders receiving $4.5 million and party committees receiving $3.3 million. The four companies favored Republican candidates and committees, with California recipients receiving 30% ($2.6 million) of the total contributions.

In addition to these four major companies, other health insurance companies and health maintenance organizations (HMOs) also contribute to state-level campaigns. From 2005 through 2008, the industry as a whole gave nearly $32.3 million at the state level. While the insurance industry's contributions are spread across various states, California stands out as a top recipient, receiving 30% of the total contributions from the large health insurance companies.

The insurance industry's political donations are not limited to state-level campaigns. During the 2020 election cycle, individuals and political action committees (PACs) associated with the insurance industry made $120 million in federal contributions, surpassing the previous record set during the 2016 election cycle. The industry has consistently favored Republican candidates, with 68% of political contributions in 2012 going to Republicans. However, it is worth noting that during the 2016 election cycle, Hillary Clinton, the Democratic nominee, received more contributions from the insurance industry than any other candidate.

Auto insurance companies' political spending

Auto insurance companies, along with other insurance providers, are major contributors to federal campaigns in the US. In 2012, the insurance industry spent a record $58.7 million on federal parties and candidates. This figure does not include the over $154 million spent on federal lobbying efforts in 2013.

The insurance industry has traditionally favoured Republicans over Democrats, with 68% of political contributions in 2012 going to the Republican Party. However, in the 2020 election cycle, Democratic presidential candidate Joe Biden received more funds from insurance industry political committees than President Donald Trump, with $5.5 million compared to Trump's $4.6 million.

In terms of auto insurance companies specifically, State Farm Insurance was listed as one of the top spenders in insurance from 2015 through 2016, along with companies like Starr Companies, New York Life Insurance, and Blue Cross/Blue Shield. These companies and their employees contribute to candidates, parties, and political action committees (PACs) at the state and federal levels.

While the insurance industry's political spending is significant, it is worth noting that the industry's contributions are spread across various sectors, including health, life, property, and auto insurance companies, as well as their respective agents and brokers.

The insurance industry's preference for Republicans

The insurance industry has a history of donating to political campaigns, and in recent years, it has favoured Republican candidates over Democrats. This preference is evident in the industry's political contributions during the 2012 and 2016 election cycles, where a significant majority of donations went to Republican candidates and the Republican Party.

During the 2012 election cycle, the insurance industry spent a record $58.7 million on federal parties and candidates. Of the nearly $55 million that went to parties and candidates, 68% went to Republicans. This trend continued into the 2016 election cycle, with the Republican Party outstripping the Democratic Party in donations from the insurance industry by a significant margin of $19.7 million to $9.6 million.

Independent agents and brokers within the insurance industry also tend to lean towards the Republican Party. The Independent Insurance Agents & Brokers of America and the Council of Insurance Agents & Brokers, the two biggest spenders in this group, contributed approximately $1.9 million during the 2015-2016 period, with more than 70% of their contributions going to Republican candidates and the Republican Party.

However, it is worth noting that the insurance industry's political contributions are not solely focused on Republican candidates. During the 2020 election cycle, Democratic presidential candidate Joe Biden received more funds from insurance industry political committees than President Donald Trump, with $5.5 million compared to Trump's $4.6 million. Additionally, health insurance companies have been known to donate to both sides of the aisle, although these contributions can be a contentious issue for progressives and health advocates who seek to reform the healthcare market.

Blue Cross/Blue Shield's political contributions

Blue Cross/Blue Shield (BCBS) is a national federation of 34 to 36 independent, community-based and locally operated Blue Cross and Blue Shield companies. Together, these companies provide health care coverage for one in three Americans, or 107 million members in 50 states, Washington, D.C., and Puerto Rico.

BCBS is a major contributor to federal campaigns. In the 2019-2020 election cycle, the BCBSA PAC contributed more than $380,000 to federal candidates, including nearly $75,000 to GOP objectors. In total, Blue Cross Blue Shield gave more than $465,000 to GOP objectors in the last election cycle. In 2012, Blue Cross/Blue Shield spent $1,545,471 on political contributions, making it one of the top spenders in the insurance industry.

In January 2021, following the attack on the U.S. Capitol, Blue Cross Blue Shield Association (BCBSA) was among the first major corporations to announce changes to its political donation practices. BCBSA President and CEO Kim Keck announced that the company would suspend contributions to lawmakers who voted against accepting the Electoral College results and undermined democracy. This decision was made to ensure that those receiving contributions shared the company's values and goals.

While most independent BCBS companies determine their own political contribution policies and priorities, some have chosen to follow BCBSA's lead. Blue Shield of California, CareFirst BlueCross BlueShield, and Independence Blue Cross are among those that have suspended contributions to federal lawmakers who voted against the Electoral College results.

It is worth noting that BCBS's political contributions come from its PAC, which is solely supported by employee contributions.

Progressive Insurance's political affiliations

Progressive Insurance has been the subject of scrutiny regarding its political affiliations and campaign donations. The company has been associated with "the Progressive movement" and linked to George Soros, a known supporter of progressive causes. However, Progressive has denied any affiliation with George Soros and stated that the personal political activities of its employees do not reflect the company's opinions or beliefs.

While Progressive Insurance itself has not reported making direct political contributions, there is information suggesting that money from the organization has made its way into political campaigns. According to OpenSecrets, Progressive Insurance contributed to the 2024 election cycle, but it is important to note that the money came from individual members, employees, owners, and their immediate family members, rather than the organization itself. This is because, by law, organizations cannot contribute directly to candidates or party committees.

Progressive's former Chairman, Peter Lewis, who passed away in 2013, was known for his generous donations to various organizations and causes, including political ones. He was accused of funding leftist causes in America and contributing to organizations like the ACLU and MoveOn.org. These donations sparked controversy, with some customers choosing to pay more for auto insurance from other companies due to their political beliefs.

Progressive Insurance has also been the subject of a petition on the MoveOn website, which alleges that the company has "communist affiliations" and associations with George Soros. The petition further accuses Progressive of having a "secret agenda" and encourages people to stop buying their insurance.

In contrast, Progressive's CEO, Tricia Griffith, is a member of the Business Roundtable, which has released pro-democracy statements and advocated for voting rights. Progressive has also made an independent statement supporting democracy and voting rights, stating that they stand "against efforts that may prevent any person from fully participating in our democracy."

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