While much of the nation was focused on the historic election of Barack Obama on Nov. 4, the automotive repair and insurance industries had their eyes on a number of Congressional and local races that could impact their respective legislative agendas. The new Democratic majorities in Congress and several state legislatures could bode well for repairers who support federal insurance regulation. Several new insurance commissioners also were elected.

At the start of the next Congress, Democrats will hold at least 57 seats in the Senate (including two independents) and 255 seats in the House. Democrats also control 29 governors’ offices and 27 state legislatures. According to the National Conference of State Legislatures (NCSL), Democrats gained control of both houses in four states — Delaware, Nevada, New York and Wisconsin. Republicans, meanwhile, gained two Southern legislatures in Oklahoma and Tennessee.

And that’s good news for the automotive repair industry, according to Bob Redding, Washington, D.C., representative for the Automotive Service Association (ASA).

“I think we’re going to see more activity in the 111th Congress on insurance reform than we have in the past,” Redding says. “We’re hoping the Congress will get down to business and pass federal regulation of the property and casualty insurance industry, which the ASA supports.”

There will now be more Democrats, who are generally more open to insurance reform measures that favor the repair industry, on the relevant committees in both chambers. Of critical importance, Redding says, will be the shift in committee assignments now that Delaware’s Joe Biden is leaving the Senate, and West Virginia’s Robert Byrd is stepping down as head of the Senate Appropriations Committee. It’s possible that North Dakota Democrat Byron Dorgan could wind up as chair of the Commerce Committee.

“We’ve worked with Senator Dorgan in the past, and he’s very supportive of the independent repair industry,” Redding says. “He’s a hobbyist and knows a lot about automotive repair. For our issue areas, it’s challenging to find legislators who are both on the right committees of jurisdiction, and interested in the automotive piece, particularly independent repairers.”

Another position to watch: President-elect Obama’s choice for head of the Environmental Protection Agency (EPA). The potential short list for the job includes Kansas Governor Kathleen Sebelius and environmental activist Robert Kennedy Jr. California Senator Barbara Boxer, now chair of the Senate Environment & Public Works Committee, also may be in line for a cabinet-level position. “The environment is going to be a hot issue in ‘09,” Redding said.

The insurance industry, meanwhile, is concerned that the new Democratic majority could push through legislation it opposes, such as adding windstorm coverage to the National Flood Insurance Program, a ban on the use of credit scoring, and federal regulation of insurance.

“With this new political landscape and the upheaval in the financial services sector, the Property Casualty Insurers Association of America (PCI) is prepared for the significant challenges ahead for the industry and ready to engage the new Administration, Congress, and state officials,” says David Sampson, president and CEO of PCI. “The elections have brought in many new legislators and it will be critical for the industry to help lawmakers at all levels better understand the essential role a healthy, competitive insurance marketplace plays in keeping the nation’s economy moving forward and find opportunities to positively advance our agenda and tell the story of how our industry protects peoples’ property and dreams and rebuilds lives and communities.”

The shift in control of state government also could impact redistricting in 2010, and new insurance committee chairs in various state legislatures.

“Regardless of who wields the gavel in the state houses, we anticipate facing renewed challenges on insurers’ use of credit,” says John Lobert, senior vice president of state government affairs for PCI. “Auto body repair issues remain a top issue in many states, including Rhode Island, Connecticut and California. We would not be surprised to see these issues discussed in 20 or more states in 2009.”

New insurance commissioners

Democrats also did well in the five state insurance commissioner races this year.

Democrat Karen Weldin Stewart defeated Republican John Brady, an attorney, in the race for Delaware’s insurance commissioner post. Stewart is a former deputy receiver for the Delaware Department of Insurance, and president and CEO of the Weldin Group Inc., a consulting firm that specializes in receiverships.

Stewart had defeated Gene Reed, the candidate supported by the Democratic Party establishment in that state, during the primary. She succeeds Matt Denn, another Democrat, who was elected the state’s Lieutenant Governor. Democrats now hold all of Delaware’s statewide offices and control the state legislature.

Another Democrat, Wayne Goodwin, won a three-way race in North Carolina against Republican John Odom and Libertarian Mark McMains. Goodwin, a former attorney, previously served for eight years in the North Carolina Legislature and worked for outgoing commissioner Jim Long as assistant commissioner of insurance and assistant state fire marshal. Goodwin made coastal insurance a central part of his campaign.

A third Democrat, Monica Lindeen, is the new auditor and insurance commissioner in Montana, edging out Republican Duane Grimes by six percentage points. Lindeen, a former state legislator, replaces term-limited Democrat John Morrison.

In North Dakota, incumbent Republican insurance commissioner Adam Hamm defeated Democrat Jasper Schneider by just a few thousand votes. Hamm was appointed to the post by Gov. John Hoeven to replace outgoing Commissioner Jim Poolman. Poolman resigned amid some controversy to start a consulting firm last year, possibly in violation of the National Association of Insurance Commissioners’ conflict-of-interest policy. Hamm has worked both as a state’s attorney and in private practice.

Washington Insurance Commissioner Mike Kreidler also was re-elected by a wide margin against Republican John Adams, owner of a Seattle-based insurance brokerage. Kreidler, a licensed optometrist and retired lieutenant colonel in the Army, served in the Washington State Legislature for 16 years, as well as in the U.S. House of Representatives. He was first elected insurance commissioner in 2000.