Alliance of American Insurers Details

This organization was formed to represent insurance companies in the property and casualty sector, advise them on insurance matters, and push for changes in legislators' regulations. It influences the public's decision through awareness of insurance matters.

Other goals behind the formation of this organization are;

  • Educating member companies on insurance matters.
  • Researching the property and casualty insurance field.
  • Publishing materials to create awareness to the general public.
  • Influencing legislator's approach towards the insurance industry.
  • Pushing for political reforms in the insurance industry.

In 2020, the Alliance of American Insurers defended the rights of about 60% of property and casualty insurance companies. Since the merging of the Property Casualty Insurers Association of America (PCI) and AIA, insurance services in the United States have assumed a new look. The public and business enterprises have access to critical and updated information concerning their property's insurance against theft, accidents, and loss.

Despite the many mergers throughout the years, the main objective of AAI has been achieved. The needs and concerns of the property and casualty insurance companies have been advocated for. The APCIA shares the ambitions of AAI. Since its creation, the organization continues to promote the insurance markets in the United States. This creates constructive competition among insurance companies. They also uphold the country's regulatory laws in matters of insurance.

Real-World Examples of Alliance of American Insurers (AAI)

AAI has presented several complaints and demands in court on behalf of insurance companies and the American public. These include:

  • AAI versus Mario Cuomo, Governor of New York in 1988: AAI sought a declaration to affirm that Article 40 of the 1986 Act deprives them of their property as insurers, unjustly and unconstitutionally. Cuomo won the case and dismissed the allegations by AAI.
  • AAI versus Chu in 1991: AAI represented insurance companies and policyholders in a case where they sought a judgment declaring invalid aspects of legislation in the New York government. This law allowed the state to divert fund earnings to the general public. The alliance lost to the state of New York after the court declared Chapters 503 and 55 as constitutional and valid.

History of Alliance of American Insurers (AAI)

Alliance of American Insurers was formed in 1977 by about 330 property and casualty insurance companies. A property insurance company offers policies that protect the property or offer liability coverage for individuals and businesses. Casualty insurance provides a broad category of insurance against theft, damage, or loss of property. These include personal vehicles, business premises, and equipment.

AAI provides a joint association for such companies to strengthen and establish competitive markets for insurers. After 27 years working as one organization, AAI merged with the National Association of Independent Insurers (NAII) to form the Property Casualty Insurers Association of America (PCI). PCI has influencers in every state in America who lobby for reforms in the insurance sector. They work with regional managers to track bills and regulations set up by the national and federal governments.

The officers also provide member companies with information aimed at reaching informed business decisions. PCI has been upholding the American Association of Insurers' objectives, forming the reference point for most property and casualty insurers. It represents about 40 percent of this sector in the United States. APCIA continues to educate and create awareness about insurance matters to the American public through publishing materials and conferences. These conferences attract thousands of Americans every year.