What Is the American Insurance Association (AIA)?

The American Insurance Association (AIA), incorporated in 1866, was a leading property and casualty insurance (P&C) trade organization. In early 2019, the AIA merged with the Property Casualty Insurers Association of America (PCI) to form the American Property Casualty Insurance Association (APCIA). The APCIA now has 431,000 members. The P&C insurance industry is considered a part of the financial sector of the stock market and includes many large insurance companies.

Key Takeaways

  • The American Insurance Association (AIA) merged with the Property Casualty Insurers Association of America (PCI) in 2019 to form the American Property Casualty Insurance Association (APCIA).  
  • The APCIA represents companies on the state and federal level by monitoring legislation. 
  •  Together, the PCI and AIA represent over 1,300 member companies that write over $250 billion in annual premiums. 

How the American Insurance Association (AIA) Works

The AIA represented companies on the state, federal, and international scope by monitoring legislation on each level. It served as a resource for policymakers, the media, and the public on certain insurance issues. The AIA had local representation in every state, regional offices in key locations throughout the country and headquarters in Washington, D.C. The AIA contributed to National Building Codes, highway safety, and the enactment of the Terrorism Risk Insurance Act in 2002. 

The function of the AIA and the subsequent APCIA is to protect and support its members. The AIA board of directors mobilized industry resources in various insurance fields to assist with specific issues. AIA member companies jointly developed legislative, judicial, and regulatory priorities. The members had online access to new regulations, bulletins, and laws. Members also received access to the newest data sources, ad hoc studies, and legal research tools. 

The AIA provided members with support in the court system through its legal department. The AIA facilitated meetings between individual member companies, and regulatory officials when company-specific issues arise and need resolution.

The AIA customized daily reports that relate to adopted regulations and department bulletins. It had a regulatory database and a supplemental Enhanced Legislative Search, which allowed its members to search for all insurance-related legislation by any combination of all insurance issues in the AIA database. Another report that the AIA produced relates to newly enacted legislation by issue. The AIA generates a state-level report to summarize select property and casualty insurance issues, regulations, and communications.

AIA vs. PCI

Together, the newly formed APCIA represents upwards of 60% of the US P&C market. Before the merger, PCI had 1,000 member companies while AIA had 330 companies. The two combined cover companies that write more than $354 billion in annual insurance premiums. David Sampson, the current CEO of APCIA, was the CEO of PCI since 2007. The PCI was formed in 2007 with the merger of the National Association of Independent Insurers and the Alliance of American Insurers.