The American Insurance Association (AIA) and the Property Casualty Insurers Association of America (PCI) have announced that they have entered merger discussions to create a unified U.S re/insurance trade organisation.
A merged trade association would represent approximately 60% of the U.S property and casualty (P&C) market, creating an influential voice that would cover the full breadth of the industry.
Speaking in a joint statement, Anthony J. Kuczinski, President and Chief Executive Officer (CEO) of Munich Reinsurance America and Chair of the Board of AIA and Kurt F. Bock, CEO of COUNTRY Financial and Chair of the Board of Directors of PCI, said:
“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.”
They added: “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. 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 Boards have agreed in principle that the new organisation should continue to reflect the diversity of the united membership, and should promote both competitive insurance market solutions and improve U.S regulatory systems through public policy engagement.
Kuczinski and Bock explained: “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.
“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.”
