PIACT’s legislative priorities for 2025: streamlining regulations, protecting consumers

January 22, 2025

As we enter the 2025 legislative session, PIACT is sharpening its focus on advocating for reforms that will enhance efficiency, modernize outdated practices and provide better protections for insurance consumers throughout the state. Among the organization’s top priorities are simplifying surplus-lines insurance policy placement process, regulating predatory third-party litigation funding and addressing emerging risks related to e-bikes and e-scooters.

Simplifying surplus-lines insurance placement

One of PIACT’s primary goals this session is to reform surplus-lines insurance placement by removing the “diligent effort” requirement. Under current Connecticut law, retail insurance brokers must obtain declinations from at least three licensed insurers before placing coverage in the excess-and-surplus market. This rule is both time-consuming and often unnecessary, given the unique nature of E&S risks, which typically include distressed, volatile or emerging coverages that standard insurers avoid.

As most retail brokers will tell you, the last place they want to go is the E&S market. No offense to wholesalers—who are wonderful people—but retail brokers have strong disincentives against unnecessarily using the E&S market. Placing a risk in the E&S marketplace means working with carriers with whom they lack contractual relationships or revenue-sharing agreements. It also means sharing commissions. This results in retail brokers relinquishing both control and income. These realities act as natural bulwarks deterring retail brokers from only using the E&S market when it is necessary to secure specialized coverage unavailable in the admitted market. In such cases, the diligent-effort requirement becomes an unnecessary hurdle, delaying brokers’ ability to meet their clients’ needs efficiently.

PIACT advocates for legislation that would eliminate this requirement when brokers work with a licensed E&S wholesale broker. This reform aligns Connecticut with other states—such as Florida, Louisiana and Virginia—that already have repealed similar provisions. These states have seen no significant increase in E&S market usage, demonstrating that brokers only turn to this market out of necessity.

Streamlining this process would ensure quicker access to essential coverage for clients while modernizing Connecticut’s insurance regulations. Importantly, it also would preserve the competitive balance in the market by enabling brokers to address specialized risks more efficiently without compromising consumer protections.

Regulating third-party litigation funding

The increasing prevalence of third-party litigation funding—also known as lawsuit lending—has raised concerns about predatory practices that can harm plaintiffs and inflate legal costs. PIACT supports efforts to regulate this industry, advocating for fair and transparent agreements that protect individuals from exorbitant interest rates. By promoting accountability in this space, the proposed regulations would contribute to a more balanced legal system and help stabilize insurance costs over time.

Establishing requirements for e-bikes and e-scooters

With the surge in popularity of e-bikes and e-scooters, Connecticut has seen a corresponding rise in accidents involving these vehicles. PIACT is pushing for a comprehensive insurance framework that requires operators to carry liability coverage. This initiative aims to protect riders, pedestrians and other road users, ensuring financial responsibility in the event of an accident. Such a framework is critical as these modes of transportation continue to grow in use and significance.

PIACT’s commitment to protecting agents and consumers

Beyond its legislative priorities, PIACT maintains an unwavering commitment to monitor all insurance-related legislation closely. The organization works tirelessly to identify potential impacts—positive or negative—on independent agents and their clients. This vigilance ensures that the needs and interests of consumers and agents remain at the forefront of Connecticut’s insurance landscape.

PIACT’s 2025 legislative agenda underscores its dedication to promoting fair, efficient and forward-looking policies that benefit everyone involved in the insurance process. By addressing emerging challenges and modernizing outdated practices, the organization is paving the way for a more equitable and responsive insurance market in Connecticut.

PIACT also remains committed to monitoring all insurance-related legislation to ensure that independent agents and their clients are protected from unfair or burdensome regulatory changes consistently.

Bradford J. Lachut, Esq.
PIA Northeast |  + posts

Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.

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