Last week, representatives from PIANY met with officials from the New York State Department of Financial Services for a second time this month to continue discussions on the impending exits of Adirondack Insurance Exchange and Mountain Valley Insurance Company from the New York marketplace. This meeting is part of PIANY and DFS’s ongoing effort to understand the challenges posed by these exits and to address their impact on policyholders, agents, and the broader insurance industry.
Challenges across the insurance market
One key issue raised during the meeting was the challenge of securing new coverage for clients across the state—but particularly in New York City and on Long Island. PIANY representatives emphasized that agents are finding it increasingly hard to place policies in this region, with few insurers willing to write new business.
The DFS and PIANY are exploring creative solutions to keep carriers in the market and attract new ones.
PIANY leadership has committed to gathering further feedback from its carrier partners.
Timeline for Adirondack exit
During the meeting, PIANY asked the DFS if Adirondack still planned to exit the market on Tuesday, Dec. 31, 2024—the DFS confirmed the deadline.
PIANY had hoped for an extension to ease the transition for agents and policyholders, but the DFS clarified that the timeline is fixed due to the extensive negotiations that were required to reach the current agreement with Adirondack.
Agents were advised to begin transitioning their clients now to ensure they can find alternative coverage before the deadline. The DFS assured PIANY that it will continue to work closely with the exiting carriers to ensure the process is as smooth as possible for all parties involved.
AmGUARD market withdrawal
Drawing on feedback from insurance producers across the state, PIANY leadership inquired with the DFS about the status of AmGUARD Insurance Company. The DFS confirmed it has been in discussions with AmGUARD regarding its upcoming withdrawal from the New York market, following the company’s broader decision to exit the personal-lines market nationwide.
AmGUARD has submitted its withdrawal plan, which currently is under review by the DFS.
PIANY will stay in close contact with the DFS to monitor the progress of this review and assess its potential impact on the market.
Forced placements
With the extension of Adirondack Insurance Exchange’s market exit no longer an option, PIANY leaders expressed concern that many AIE policyholders may struggle to find coverage by the end of the year.
The DFS reported that it has been collaborating actively with mortgage assistance leaders and it has been engaging with banks and state-chartered institutions to explore solutions that help policyholders secure coverage from solvent carriers—aiming to avoid the need for force-placed insurance.
The DFS is open to feedback, and it is working closely with banks and carriers to address the challenges agents are facing. The department also acknowledges its readiness to intervene when issues arise by engaging with financial institutions to help resolve difficulties in placing insurance coverage.
Flood insurance promotion and public education
As part of the broader discussion, the DFS also suggested that agents and brokers update their websites to better promote flood insurance programs. By encouraging clients to consider flood coverage, the DFS hopes to boost awareness and adoption in vulnerable areas.
Hurricane Debby highlighted the importance of flood insurance when 78% of the damage occurred outside Federal Emergency Management Agency-designated flood zones. Despite the risks, many consumers are not purchasing flood insurance outside these zones.
Moving forward
As the industry navigates the challenges posed by these carrier exits, the representatives from the DFS told PIANY that the department is committed to working with the association and other stakeholders to mitigate the impact of these carrier exits on agents and policyholders.
The department is exploring creative solutions to address the lack of available coverage across the state, particularly in regions—like Long Island and the five boroughs of New York City—and it is seeking to incentivize carriers to stay active in the state.
PIANY will continue to engage with the DFS to ensure the needs of agents and their clients are met during this difficult period. Regular updates will be provided to PIANY members as the situation develops.
PIANY was represented at the meeting by President-elect Rich Andrews, LUTCF; and First Vice President Jason Bartow, AAI, CPIA.
The DFS was represented by Bhavna Agnihotri, executive deputy superintendent of insurance; Bernard Ganley, deputy superintendent of insurance, property & casualty; Tanuja Mohapatra, senior advisor to the superintendent; and Joyce Ellis, director of legislative affairs.
Theophilus Alexander
Theophilus W. Alexander joined PIA Northeast as a government & industry affairs specialist for the Government & Industry Affairs Department in 2023. Prior to joining PIA, Theo had served in both houses of the New York State Legislature. Previously, he worked as a legislative analyst for Hon. New York State Sen. Samra G. Brouk, D-55, and he served at the New York State Assembly, as a policy analyst with New York Assembly Program & Counsel. Theo received his Bachelor of Arts degree in Politics from Ithaca College in Ithaca, N.Y.
