The Insurance Information Institute plans to affiliate with The Institutes after 60 years as an independent organization.
I.I.I.’s board of directors approved the plan earlier in June and The Institutes Board agreed to the affiliation on June 24, according to a release disclosing the news. The affiliation, which will bring the Triple-I brand into the Malvern, Pennsylvania-based The Institutes structure, reflects the changing landscape of the broader industry and the economy, both groups said. Further details will be publicly announced once the deal is finalized in July, the two organizations stated.
Peter Miller, president and CEO of The Institutes, said in prepared remarks that the I.I.I. brand “is invaluable to us,” and that “combining their assets with ours will allow both organizations to turn the page on the next chapter of their operations and sets both of us up for continued long-term success.”
Sean Kevelighan, the I.I.I. CEO, said in prepared remarks that the deal “will further unify our collective efforts when it is needed most, grant both the Triple-I and The Institutes greater access to a deeper bench of resources and expertise, and improve value for Triple-I’s member companies across the country.”
He added that the planned affiliation is a “forward looking decision” resulting from “several years of strategic dialogue both internally at the Triple I and with The Institutes.”
Robert Hartwig, who ran and shaped I.I.I. for 18 years until 2016, when Kevelighan replaced him, said news that the organizations were joining forces is “bittersweet.”
“Today’s announcement of an affiliation between the I.I.I. and The Institutes is a bittersweet moment for the industry,” Hartwig told Carrier Management via email. “In its sixtieth year, the I.I.I. is about to lose its independence. That independence has always been a valued and cherished hallmark of the organization and a source of pride for the industry.”
Hartwig noted, however, that I.I.I. has experienced a deterioration of finances over the past four years “amid the withdrawal or announced withdrawal of at least 24 member companies, including numerous board-level members.” He added that III has seen revenues fall and expenses grow, versus its previous longstanding history, particularly the period of 2007 through 2015, “during which the organization expanded its membership and its top line.”
At the same time, Hartwig said he is hopeful that III’s fortunes will improve under the umbrella of The Institutes.
“I have great respect for Pete Miller, CEO of The Institutes, who I know quite well,” said Hartwig, who is now Director of the Center for Risk and Uncertainty Management at the University of South Carolina’s Darla Moore School of Business. “I am hopeful that the I.I.I.’s 60-years of experience will add tangible value to The Institutes and its mission.”
An Insurance Information Institute spokesperson said that the organization has taken numerous steps under Kevelighan’s leadership to improve and modernize its operations.
“Over the last four years, Triple-I has undergone significant modernization of its internal governance, operations, and membership initiatives. Among other efforts, we defined a new reserves approach, developed core key performance indicators, and formalized a process for CEO review and payment restructuring that will better sustain its financial footing,” said Michael Barry, I.I.I.’s Head of Media and Public Affairs. “Today, Triple-I is a more professional, transparent, and team-oriented organization that is reflected both in our internal and external presence.”
The Institutes is a global provider of risk management and insurance education and research. It has expanded in recent years with moves such as its 2018 acquisition of Claims and Litigation Management, a professional association in the claims resolution and litigation management industries. Its other divisions also include the CPCU Society, whose members have earned or are in the process of earning the industry CPCU designation, a professional credential whose acronym stands for “Chartered Property Casualty Underwriter.”
Source: The Institutes/I.I.I.