An AIA/PCI merged organization would speak for approximately 60% of the U.S. P&C market and create an even more influential voice for the insurance industry in Washington.
As "merger fever" looks to continue to spread among the P&C industry, a new, merged trade association of significant import could be on the horizon.
On Wednesday, the American Insurance Association (AIA) and the Property Casualty Insurers Association of America (PCI) released a joint statement indicating that merger discussions and appropriate due diligence had been authorized in order to explore a union of the two organizations.
"The respective Boards of AIA and PCI believe there is great benefit in a more unified policy and advocacy voice for property casualty insurers, given the unprecedented pace of change in the world and the resulting potential opportunities and challenges," read the statement by Anthony J. Kuczinski, president and CEO of Munich Reinsurance America and chair of the board of directors of the American Insurance Association (AIA), and Kurt F. Bock, chief executive officer of COUNTRY Financial and chair of the board of directors of the Property Casualty Insurers Association of America (PCI).
The resulting merged trade association would speak for approximately 60% of the U.S. P&C market and create an even more influential voice for the insurance industry in Washington.
Work only beginning
The statement stressed that a great deal of work remains ahead before a recommendation could be put before both memberships for a vote. "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," it read.
"Our goal would be to combine the best of both organizations into one preeminent thought leadership and advocacy voice for personal, commercial and specialty property casualty companies, while providing valuable information and compliance services," the statement said. "Industry unity has defined the outcome of the most paramount property casualty issues at the state, federal, and international levels, and will continue to shape future policy results. We are stronger together — companies of all sizes, structures, and regions."
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