How to fortify New York’s property and casualty insurance market

What role do you play in the New York insurance industry?  

Big I NY represents independent insurance agents and brokers who are dedicated to helping New Yorkers protect what matters most. Independent agents provide trusted advice and coverage options to families seeking protection for their homes and cars, and to small business owners, large companies, nonprofits and municipalities as they endeavor to serve their customers and communities.

Independent agents are on the front line of a complex insurance ecosystem. They see firsthand the impact that rising insurance costs, diminishing coverage availability and unintended consequences that well-intentioned public policy can have on New Yorkers. It’s through their daily interaction with consumers that Big I NY members become the first to see challenges bubbling up in the property and casualty (P&C) marketplace. Their perspectives should be carefully considered. 

NY First is a group of insurance companies and trade associations that support the independent insurance agency system. They work to foster a healthy, vibrant insurance market and workforce in New York.

What are the biggest challenges facing New York’s property and casualty marketplace?  

Affordability and access to insurance for consumers. While headlines about P&C insurance carriers reducing their exposure, pulling out of markets or even going insolvent are often associated with states like California and Florida, these same concerns are now being felt here in New York.  

We are currently experiencing a “hard market,” which is caused by multiple external factors stressing the marketplace, driving up insurance costs and reducing coverage availability. To maintain viability, carriers employ strategies such as adjusting underwriting guidelines or reducing exposure to certain lines of businesses, especially those impacted by extreme weather. These changes can push consumers into residual (i.e. more expensive) markets or cause them to forgo insurance altogether.

A healthy marketplace is one that encourages competition through price, innovation and capacity to manage and spread risk. While we are facing tough conditions, these hard market challenges are not insurmountable. We have the tools to build a stronger, more resilient marketplace that benefits New York families and businesses.  

As we work together to address market conditions, decision-makers must maintain clarity around one fundamental question: “How do policy proposals impact insurance access and affordability for New Yorkers?”

What is causing these challenging market conditions and how do we address the issue?  

There are several factors affecting the insurance market, including inflation, severe weather, reinsurance costs, supply chain issues and reckless driving. These are difficult to control.  

However, there are many contributors with attainable solutions that, with some political courage, we can quickly achieve, such as:   

• Continued industry partnership to improve timely approval of insurance rates, forms, products and risk mitigation tools  
• Ensuring the Department of Financial Services has the necessary staffing resources to enhance regulatory efficiency  
• Combatting all levels of insurance fraud  
• Reforming aspects of the legal system that contribute to rising costs 
• Continued engagement with front-line agents through groups like Big I NY to understand consumer impact  

These are not abstract policy priorities. They are practical and achievable solutions that can promote a resilient financial system, empower, and protect consumers, and ensure the health of regulated entities. This is a critical moment for New York's insurance marketplace that requires stakeholders to work together and take bold, proactive steps to address market challenges.  

Big I New York and NY First are committed to driving this conversation forward during the City & State New York Property & Casualty Insurance Summit: Charting a Path for Stability and Access for All, on Tuesday, Feb. 4 in Albany. This event is an opportunity to tackle the most pressing risk management issues facing our state. We invite everyone to join us and help chart a course toward a more stable and accessible insurance market.