Alliance of American Insurers (AAI): Evolution, 2019 Merger & Market Impact
Explore the history and transformation of the Alliance of American Insurers (AAI), its 2004 merger, and the 2019 formation of the American Property Casualty Insurance Association (APCIA), representing a major share of the U.S. property-casualty insurance market.
Julia Kagan is a financial and consumer journalist and former senior editor for personal finance at Investopedia.
What is the Alliance of American Insurers (AAI)?
The Alliance of American Insurers (AAI) was originally a coalition primarily composed of property-casualty insurance companies. Established as a political lobbying group, its mission was to advocate for the interests of this segment of the insurance industry by engaging with lawmakers and educating the public.
In 2004, the AAI merged with the National Association of Independent Insurers (NAII) to create the Property Casualty Insurers Association of America (PCI), which at that time represented over 40% of the U.S. property and casualty insurance market.
Later, in January 2019, PCI combined forces with the American Insurance Association (AIA) to form the American Property Casualty Insurance Association (APCIA). This new entity now represents nearly 60% of all property-casualty insurance carriers in the United States.
Understanding the Role and Influence of AAI
The PCI, as AAI’s successor, served as a powerful advocate for its members across all 50 states and on Capitol Hill, providing critical updates and insights relevant to their businesses. It maintained a presence with lobbyists in every state and regional managers in key capitals, monitoring legislation and regulations affecting property and casualty insurance at both state and federal levels.
Key Highlights
- AAI functioned as a lobbying coalition for the property-casualty insurance sector.
- In 2004, AAI merged with NAII to form PCI.
- PCI merged with AIA in 2019, resulting in the formation of APCIA.
- The core mission across these organizations has consistently been to champion the property-casualty insurance industry's interests.
APCIA continues to build on the strengths of its founding groups, promoting competitive private insurance markets and supporting the U.S. state-based regulatory framework.
Alongside APCIA, the National Association of Mutual Insurance Companies also represents the property-casualty insurance sector nationally.
At the time of the 2019 merger, PCI encompassed 1,000 member companies underwriting $220 billion in annual premiums, covering about 37% of the home, auto, and business insurance markets. AIA contributed 330 member companies underwriting $134 billion in premiums yearly, underscoring the significant market influence of the combined organization.
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