6/11/2020 | This week in Business Insurance Risk Management Topics, Lawmakers consider bill to limit liability in pandemic which would help insurers facing a tide of claims. Meanwhile, a Coronavirus-related suit against Fox News dismissed and Insurtech deals up, funding down amid pandemic: Willis – Editor
By Claire Wilkinson
The Institutes is in talks to acquire the New York-based Insurance Information Institute, one of the few remaining independent trade associations representing the property/casualty industry, sources say.
If the deal goes ahead, it would be the latest in a series of acquisitions by The Institutes, the Malvern, Pennsylvania-based provider of education and research in risk management and property/casualty insurance.
The acquisition talks, which sources say are at an advanced stage, follow a trend of consolidation among industry trade associations, including the 2018 merger of the American Insurance Association and the Property Casualty Insurers Association of America to form the American Property Casualty Insurance Association.
The discussions come amid deteriorating finances at the I.I.I., where membership levels have declined significantly since 2016.
At least 24 member insurance organizations have withdrawn or given notice of their intent to withdraw, from the organization since 2016, including board-level members such as CNA Financial Corp., Marsh Inc., OneBeacon Insurance Group, Scor U.S. Corp., and State Auto Insurance Cos., records show.
The organization’s membership includes more than 60 insurers.
Total expenses at the I.I.I. rose to $10.2 million in 2018, an increase of 3.4% on 2017. The organization, which represents the industry to consumers and the media and provides information and research on insurance, reported a net loss of $1.0 million for 2018, deteriorating 14.6% from a loss of $905,836 in 2017.
Between 2016 and 2018, the organization’s cumulative losses were $3.7 million, its annual tax returns show.
Executive compensation reached $4.0 million in 2018, which represented 40% of the organization’s expenses that year, according to IRS records. The I.I.I. employed 29 staff in 2018.
I.I.I. total revenues were $9.1 million in 2018, up 2.3% on 2017, according to its latest annual returns filed with the Internal Revenue Service.
I.I.I. current president and CEO Sean Kevelighan’s total compensation was $1.1 million in 2018. Mr. Kevelighan has led the organization since August 2016.
The Institutes did not respond to requests for comment.
“As a policy, the Insurance Information Institute (Triple-I) does not speculate on rumors,” the I.I.I. said in an emailed statement.
“Our organization remains a vibrant and financially sound one, with its membership drawn from a broad cross-section of the insurance and reinsurance industries. We are proud to be a trusted, unique source of data-driven insights on insurance.”