ACIC President's Message

This year is destined to be one of change as California adjusts to unprecedented turn over in the California State Legislature. The State Senate and Assembly are controlled by a super-majority of Democrats and the insurance industry must now educate the largest class of freshmen legislators ever elected. These freshmen legislators are unique since they were elected under California’s new open primary system and will be able to serve a full 12 years in one house under a new term limits initiative approved by California voters.

Many pundits wonder if the new Democratic super-majority will translate into more tax increases and passage of more progressive or anti-business legislation. Gov. Jerry Brown (D) has vowed he will not support any tax increases without a vote of the people. The influence of the many moderate Democrats moving from the Assembly to the Senate will be important to watch. Gov. Brown won a vote of the people with the passage of Proposition 30 and got the sales and income tax increases he wanted to fill California’s ongoing structural deficit. He presented his budget proposal in January and many are relieved the State is not facing a massive $20 billion budget deficit yet again. Policymakers have been distracted by the enormous budget deficits in recent years. Now that the budget woes have improved, legislators and Gov. Brown will have more time to focus on other public policy issues. However, new distractions will include the campaign season for California’s 2014 statewide elections.

ACIC has also undergone some changes. In December 2012, ACIC formally merged with Property Casualty Insurers Association of America (PCI). PCI is a national property and casualty trade association composed of more than 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write more than $190 billion in annual premium and 40 percent of the nation's property casualty insurance. As a result of the merger, PCI is now doing business as ACIC in California. ACIC will be PCI’s California voice, bringing national strength with a California focus.

ACIC will continue its mission to advocate for a financially sound, competitive insurance marketplace which promotes the availability and affordability of insurance essential to the business and personal needs of California residents.

ACIC members doing business in the state play a vital role in California’s economy covering 36.3 percent of the total property casualty market in the state and writing $20.2 billion in premium. In 2013, ACIC will continue advocating on our priority issues including watching the appropriate implementation of the 2012 workers compensation reforms, advocating for the use of aftermarket parts which keep auto premiums affordable, identifying ways to modernize the business of insurance, and defending against special interest proposals that may increase insurance costs with no consumer benefit.

Mark Sektnan
President
mark.sektnan@pciaa.net


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