N.Y.: Hochul signs two PIA-priority bills into law 

Only a few weeks after signing PIANY’s top legislative priority into law, Gov. Kathy Hochul has taken action on two other PIANY priority issues. The governor signed one bill to introduce parametric insurance into the state’s legal framework, and another bill to expand the eligibility for the Coastal Market Assistance Program—or C-MAP—over the weekend.

These measures are set to reshape the insurance landscape in New York state, to provide innovative solutions to tackle climate-related risks and to support property owners in vulnerable coastal areas.

A modern solution for weather-related events 

The parametric law (A.10344/S.9420) represents a significant leap forward in how insurance can address the challenges posed by increasingly unpredictable weather events. By incorporating parametric insurance into the state’s Insurance Law, New York opens the door for faster, more efficient claim payouts for policyholders affected by natural disasters.

What is parametric insurance?

Parametric insurance departs from traditional insurance models. Instead of requiring detailed damage assessments to determine the extent of loss, parametric insurance pays out based on predefined criteria—such as wind speeds, rainfall levels, or earthquake magnitudes—triggered by official measurements of a specific event.

For policyholders, this means:

Quicker payouts. Claims are resolved almost immediately after the parameters are met, eliminating lengthy loss-adjustment processes.

Increased transparency. Policyholders know the payout terms upfront, making financial relief predictable and straightforward.

Consumer protections and regulatory standards

The new law ensures that parametric insurance products are sold by licensed insurance professionals, maintaining the same consumer protections as traditional personal-lines insurance like homeowners or auto policies. Insurers must prominently disclose the limitations of parametric policies at key stages—application, issuance, and renewal. This ensures consumers understand that parametric insurance is a complement, not a replacement, for traditional property or flood coverage.

Broader coverage for at-risk communities

The expanded C-MAP law (S.8320/A.9821) will address the ongoing challenges of insuring properties in high-risk coastal areas. C-MAP—established to help homeowners secure insurance in flood-prone zones—now will benefit more New York residents thanks to expanded eligibility criteria.

What’s new?

Broader geographical scope. The eligibility radius expands to one mile from the shoreline across all covered areas—including previously excluded freshwater shorelines (e.g., Lake Erie, Lake Ontario, the Saint Lawrence River and the Niagara River).

Refined shoreline definitions. By measuring from the mean high-water mark, the law adopts a practical approach to account for shifting coastlines due to climate change.

This adjustment acknowledges the growing risks faced by coastal and waterfront communities while ensuring more property owners can access vital insurance options.

Implications for insurance professionals

For agents and brokers, this new law opens up new markets. Expanded C-MAP eligibility means a broader client base, and the opportunity to offer customized insurance solutions tailored to the specific risks of coastal living. Additionally, it strengthens the partnership between insurers and homeowners, ensuring communities are better prepared for future challenges.

Another success for 2024

PIANY applauds Gov. Hochul for her approval of these bills. The New York marketplace is in a state of flux. Combined, these two new laws bring new products and expanded markets to New York state.

For insurance agents and brokers, now is the time to educate clients about these new options and ensure they are fully equipped to make informed decisions about their coverage.