Washington, DC (WorkersCompensation.com) – Two of the insurance industry’s biggest professional organizations announced they will enter into merger talks Wednesday, according to a WorkersCompenastion.com article released this week.
In a joint statement, the American Insurance Association (AIA) and the Property Casualty Insurers Association of American (PCI) had entered into discussions to merge the two trade organizations.
Maggie Seidel, Vice President of Communications for AIA, in an interview with WorkersCompensation.com, said the two organizations would make no further comment than the joint press release.
In the release Anthony J. Kuczinski, Chair of AIA’s Board of Directors, and Kurt F. Bock, Chair of PCI’s Board of Directors, said the merger would create an organization that “would speak for approximately 60 percent of the US property casualty market, representing the full breadth of the industry and creating an even more influential voice.”
Seidel referred all questions as to the process and how long the discussions would take to the press release.
In it, Kuczinski and Bock said this is just the beginning of the talks.
“There remains a great deal of work to do before our Boards are in a position to make a final recommendation to our memberships regarding a merger,” the statement said. “Our respective Boards are considering how to best represent our members and position the industry for the long-term opportunities in this period of unprecedented change.”
The goal, the organization’s leaders said, was to combine the best of both organizations, while continuing to provide advocacy, information and compliance to its members.
Mark Walls, Vice President of Communication and Strategic Analysis at Safety National, said the merger is a good thing.
“Having two different lobbying groups focused on property/casualty insurance issue was not efficient and it diluted the effectiveness of the efforts,” he said in an email interview. “A combined AIA/PCI would have members representing over 60% of the property/casualty industry in the United States. Personally I welcome this merger and think the two entities together will be much stronger than they were separately.”
AIA represents 330 companies that write more than $134 billion in premiums each year. PCI says it has 350 member company groups that write $220 billion in annual premiums, or 37 percent of all the home, auto and business insurance in America. The merged total of nearly 700 member company groups would account for over $350 billion in premiums each year.
The merger, if finalized, would leave only two national groups representing property/casualty insurers in state legislatures and in Washington, DC, the new merged group and National Association of Mutual Insurance Companies (NAMIC).
NAMIC represents more than 1,400 member companies who write $253 billion in annual premiums.