WASHINGTON–Allstate Insurance Company has given its year's notice that it will be withdrawing from the Property Casualty Insurers Association of America as of 2009.
Both Allstate and PCI officials confirmed the decision, saying that Allstate has decided to do so “because it is well on its way to insourcing its government relations function, both at the federal and state level,” according to David Sampson, PCI's new president and chief executive officer.
The bylaws of the trade group require that it give a year's notice of plans to withdraw, according to both Mr. Sampson and Rich Halberg, an Allstate spokesman.
“We are members of state-level trade associations and will continue to utilize them,” Mr. Halberg said.
Allstate is also a founding member and strong support of ProtecingAmerica.org, a nonprofit organization which is advocating legislation which would allow states to create tax-free catastrophic reserve funds. PCI has been resolutely neutral on the issue.
The legislation is H.R. 3355, the Homeowners Defense Act. It has been passed by the House, but faces an uncertain future in the Senate.
Mr. Sampson said, “Obviously, PCI has had a very long and productive working relationship with Allstate. We anticipate that PCI and Allstate will continue to work together on specific issues as they arise.”
Mr. Sampson said the decision of Allstate to withdraw will not result in layoffs or other cutbacks at the trade group.
“PCI has a very strong financial position, with a strong balance sheet, given the fact that our board has been very prudent in managing our budget to ensure that we are not overly dependent on any one member,” Mr. Sampson said.
“The fact is, we have 1,049 other members and we remain committed to strong and effective advocacy on behalf of our members,” he added.
According to an industry official, who asked not to be named, Allstate was a founding member of the old National Association of Independent Insurers, a predecessor organization of PCI, and Allstate held a permanent seat on the PCI board.
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