Alliance of American Insurers (AAI)

What is Alliance of American Insurers (AAI)

The Alliance of American Insurers (AAI) was a coalition consisting primarily of property-casualty insurance carriers, formed as political lobby for this part of the insurance industry. It pursued activities aimed at furthering its objectives with both politicians and the wider public.

In 2004, the AAI and National Association of Independent Insurers (NAII) merged to form a new organization known as the Property Casualty Insurers Association of America (PCI), which at the time reportedly represented more than 40 percent of the market for property and casualty insurance.

PCI subsequently merged with the American Insurance Association (AIA) in January 2019 to form the American Property Casualty Insurance Association (APCIA), which represents nearly 60 percent of carriers in the property casualty insurance industry in the United States.

Understanding The Alliance of American Insurers (AAI)

PCI's purpose was to advocate on behalf of its members in all 50 states and on Capitol Hill, while keeping members current on information critical to their businesses. The organization retained a lobbyist in every state along with 12 regional managers in key state capitols. It tracked bills and regulation impacting property insurance and casualty insurance—on both a state and federal level—and provided information to its members to help them make informed business decisions.

The APCIA has broadly similar ambitions. It aims to leverage the substantial heft and reach of both its founding organizations to promote and improve private competitive insurance markets and the U.S. state-based regulatory system.

APICA is one of two national associations. The other is the National Association of Mutual Insurance Companies, which represents the property/casualty industry.

At the time of their merger, both PCI and AIA reportedly accounted for a significant chunk of the property and casualty insurance market. PCI had 1,000 member companies who had underwritten $220 billion in annual premiums—about 37 percent of the home, auto, and business insurance market in the U.S. Meanwhile, AIA had 330 companies as members, which together had underwritten $134 billion in premiums each year.