New Insurance Commissioner Serves Two Different Masters
February 8, 2011 by Brian Lockhart
| Source: | McClatchy-Tribune Information Services |
| Wordcount: | 437 |
Feb. 06–HARTFORD — Gov. Dannel P. Malloy said in appointing venture capitalist Thomas Leonardi as his insurance commissioner, he had tapped someone who understands the need to protect consumers, as well as the industry’s importance to Connecticut’s economy.
“I think we have the right balance,” Malloy said during a press conference announcing his selection Friday.
Leonardi is the chairman and CEO of Avon-based Northington Partners Inc., a 56-year-old firm that advises insurance companies on mergers and acquisitions.
His appointment requires legislative approval.
Leonardi steps into a position critics claim has been filled by insiders too compliant in granting rate increases sought by insurance companies.
Legislators are pursuing several bills they believe will increase transparency in the rate review process, from requiring commissioners to hold public hearings to electing rather than appointing the commissioners.
Malloy opposes making the job an elected one. But he said he has asked Leonardi to consider by April whether any changes might be made to the rate-setting process, bearing in mind that not every request from an insurer warrants a public hearing.
“We would tie the industry in knots,” he said. “(But) what do we do about some of these larger increases?”
In a statement, Leonardi noted the industry employs 65,000 in state — down almost 25 percent over the past 20 years.
“We need to reverse this decline and bring new insurance jobs to Connecticut,” Leonardi said. “Connecticut’s families need affordable and reliable insurance coverage and they need good jobs. My goal … will be to do everything within my power to make sure they get both.”
Eric George , a health care policy specialist with the Connecticut Business and Industry Association, said he was still learning about Leonardi, but was heartened by the tone of Malloy’s press conference.
“The message the governor sent — taking about nurturing and growing jobs in the insurance industry — was music to our ears,” George said.
State Rep. Andrew Fleischmann , D-West Hartford, is pursuing legislation that would make the post an elected one. Fleischmann said Leonardi might prove an excellent choice, but he still wants voters to fill the job.
“For decades we’ve had a serious fox-guarding-the-henhouse problem at the state Department of Insurance,” he said.
Staff Writer Brian Lockhart can be reached at brian.lockhart@scni.com. The Associated Press contributed to this report.
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