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New California Carrier Trade Group Formed in Wake of NAII-AAI Merger

The formation of a newcarrier trade group, the Pacific Association of Domestic Insurance Companies (PADIC) was announced on January 6, 2004. The action comes as...
January 13, 2004

The formation of a newcarrier trade group, the Pacific Association of Domestic Insurance Companies (PADIC) was announced on January 6, 2004. The action comes as the National Association of Independent Insurers (NAII) and the Alliance of American Insurers (AAI) announced they had joined forces to form the new Property-Casualty Insurers Association of America (PCI).

Formation of the Pacific Association of Domestic Insurance Companies was criticized in an interview in the National Underwriter (1/7/04) by Sam Sorich, president of the Association of California Insurance Companies (ACIC) and vice president and western regional manager of the NAII. Sorich said the new group will dilute insurers' efforts to speak with one voice, denying that the NAII-AAI merger will mean that the interests of small insurers are ignored.

In response, Pete Gorman, executive director of PADIC said in a statement, "The formation of a new state trade association for domestic insurers should not be seen by anyone as 'diluting the industry's public policy efforts.'" Gorman said he often hears form legislators and regulators that the insurance industry "is a faceless monolith" and the carriers his group represents "remind legislators, regulators and the consumers that their businesses make important economic and social contributions to their counties and to the state."

"California has lost many of its domestic insurers in recent decades because these messages apparently were not heard by public policymakers," Gorman said.

Insurance Trade Org. War? NAII Disses PADIC (National Underwriter, requires subscription login)