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When you think about politics affecting your daily life, insurance might not be the first thing that comes to mind. But the truth is, political decisions — and the people making them — play a major role in the insurance premiums you pay. If you’d like to understand how, read on.
How Insurance Commissioners Gain Power
Historically, every state’s insurance commissioner was appointed by the governor. While this may seem disconnected from voters, the connection is direct: You elect the governor, and the governor chooses the insurance commissioner. Because insurance commissioners typically share their governor’s priorities and political viewpoints, your vote indirectly shapes the state’s approach to insurance regulation.
In other words, choosing your governor wisely also means choosing — indirectly — the person responsible for overseeing insurance in your state.
The States Where Voters Directly Elect Insurance Commissioners
But 11 states take an even more direct approach:
they elect their insurance commissioner outright. These states — California, Georgia, North Carolina, Washington, Louisiana, Oklahoma, Mississippi, Kansas, Montana, Delaware and North Dakota — represent
26% of the U.S. population.
In these states, candidates run campaigns, air political ads, and make big promises about taming the “evil private insurance industry,” protecting consumers, and lowering rates. Whether those promises pan out is another story, but the takeaway is this:
voters must research this position carefully, not simply rely on party affiliation or ballot slogans.
This role can influence your wallet faster than nearly any other elected office — sometimes even faster than a change in president.
What an Insurance Commissioner Actually Does
The authority of a state’s insurance commissioner is vast. Responsibilities typically include:
- Regulating which insurance companies can operate in the state
- Reviewing and approving rate changes
- Overseeing underwriting rules
- Licensing agents and brokers
- Monitoring financial health of insurers
- Handling consumer complaints
- Issuing enforcement actions
- Conducting market conduct exams
- Leading education and outreach
Take a state like California. With nearly 40 million residents, its insurance commissioner oversees an insurance marketplace larger than the economies of many countries. This is not a small, symbolic position — it is one of immense influence.
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Why This Position Is So Important
The U.S. insurance industry represents:
- $1.32 trillion in premiums (as of 2021)
- Nearly
3 million employees
- About
6,000 insurance companies
- Over
$9.5 trillion in invested assets
Your state’s insurance commissioner sits at the center of this system. Their decisions directly affect:
- How much you pay for insurance
- What coverage options remain available
- How insurers operate in your state
- How consumer complaints are handled
Yet it’s often one of the least-recognized political roles — and voter turnout for commissioner elections is typically low, especially when the election doesn’t coincide with a presidential year.
Why You Should Care (and Get Involved)
Whether appointed or elected, the insurance commissioner has enormous influence over your financial life. In an era of rising premiums, extreme weather, carrier withdrawals, and rapidly shifting insurance markets, this role is more critical than ever.
If you live in one of the 11 states that elect their commissioner, voter responsibility is especially high. And even if your governor appoints the commissioner, your vote still matters — because you’re choosing the person who chooses the commissioner.
Before the next election cycle comes around:
- Research the candidates
- Ask questions
- Listen critically
- Remember what they promise — and whether they’ve kept past promises
- And most importantly, vote
Your insurance costs may depend on it.
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