The insurance education and research nonprofit The Institutes said it will finalize its affiliation with its fellow nonprofit Insurance Information Institute (Triple-I) on November 16, 2020.
According to the announcement, the Triple-I will retain its offices in New York City and Arlington, Virginia, and also maintain staff throughout the country, and its employees will become employees of The Institutes, which is based in Malverna, Pennsylvania.
The plan for the III to join The Institutes was announced in June. Financial and management details of the transaction were not immediately available.
Triple-I is a source of research and analysis on insurance for consumers and the industry.
The Institutes runs the Chartered Property Casualty Underwriter (CPCU) Society, the International Insurance Society and the Insurance Research Council; offers education courses and conferences for insurance and risk management professionals; and owns several risk and insurance publications.
“Together, the Triple-I and The Institutes will be better equipped and empowered to serve both the information and education needs of those interested in risk management and insurance,” said Peter L. Miller, CPCU, president and chief executive officer of The Institutes. “We see this as a great opportunity to provide a more synergized information platform for insurance knowledge and to bring further efficiencies to our organizations.”
“This affiliation is the culmination of several years of strategic dialogue at the Triple-I and with The Institutes,” said Sean Kevelighan, chief executive officer of the Triple-I. “It will further unify our collective efforts, grant both the Triple-I and The Institutes greater access to a deeper bench of resources and expertise, and improve value for the Triple-I’s member companies across the country.”
Keveiighan succeeded economist Robert Hartwig as CEO at the III in 2016. Prior to joining IIII, Kevelighan was global head of Public Affairs for Zurich Insurance Group.
Hartwig, who ran III for 18 years before leaving in 2016, told Carrier Management in June that the news is a “bittersweet moment” for the industry.
“In its sixtieth year, the III is about to lose its independence,” Hartwig said. “That independence has always been a valued and cherished hallmark of the organization and a source of pride for the industry.”
According to Hartwig, III 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 said that III has seen revenues fall and expenses grow, versus its previous history, particularly the period of 2007 through 2015, “during which the organization expanded its membership and its top line.”
[Kevelighan has pushed back in Hartwig’s analysis. He said there were issues over membership and finances at IIII before he got there in 2016 and that the III and The Institutes had also talked about potential synergies before he was on the scene. “I’ve read some articles of yours [Carrier Management and Insurance Journal] previously that membership has only weakened in last four years, and I have to say that that’s absolutely not the case,” Kevelighan stated. Find out more here about Kevelighan’s reaction to Hartwig’s comments and why he thinks the affiliation is goof for III.
If III has been losing a lot of member companies recently, that had not caused any dramatic decline in dues income through 2018 at least. According to tax filings with the Internal Revenue Service, dues from members did fall from $8.5 million in 2016 down to $8.1 million in 2017 but then rose again to $8.4 million in 2018. Filings for 2019 are not yet available,
Total revenues went from $9.5 million in 2015 to $9.3 million in 2016 to $8.9 million in 2017 to $9.1 million in 2018. In addition to membership dues, III also has revenue from services performed for other organizations, fees from an annual joint industry conference and sales of publications.
However, salaries took a big jump from $5.5 million in 2015 to $6.4 million in 2016, then rose further to $6.9 million in 2017 before dropping to $6.1 million in 2018. III had 29 employees in 2018.
Overall, III’s expenses have exceeded revenues from 2016 to 2018 by almost $3.7 million. III reported a shortfall of $1.7 million in 2016; $905,836 in 2017 and $1.0 million in 2018.
Meanwhile, in the past several years under Miller, the Institutes has been growing by acquiring or affiliating with various organizations and firms including Insurance Thought Leadership, the Pacific Insurance Conference, Claims and Litigation Management association, the International Insurance Society, the National Workers’ Compensation and Disability Conference, and the National Ergonomics Conference, as well as a few insurance risk management publications.
Miller was named the CEO of the Institutes in 2006. He first joined the organization in 1992 and advanced through positions in finance, information systems, and human resources. In 2002, Miller was appointed executive vice president with responsibility for the full range of Institutes’ business functions and international and executive education activities.
Former III head 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 IIII’s 60-years of experience will add tangible value to The Institutes and its mission.”
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