News
FEMA issues new flood standard and resources
Last summer, the Federal Emergency Management Agency published the final rule to fully implement the Federal Flood Risk Management Standard, which revises the agency’s floodplain management regulations. Under the previous standards, communities experienced repeated cycles of flooding and recovery, with survivors facing the ongoing risk of flooding to their safety and finances. The new standard uses a higher flood elevation and wider floodplain to reflect the increased flood risk. FEMA’s implementation of the rule enables communities to better understand floodplains, recognize vulnerable areas, enhance their capacity to design resilient infrastructure and prioritize protective measures.
Poll suggests SoCal fires to exceed $40 billion
The Greater Los Angeles county fires have destroyed over 16,000 structures, forced thousands of people to evacuate and killed nearly 30 people. It’s estimated that the fire damage is over $250 billion, making it among the costliest natural disasters in U.S. history. Reinsurance News took a poll sampling of industry experts; 42% of respondents said the fire would result in losses over $40 billion; 28% of respondents suggested the fire would results in losses between $30-40 billion. Risk modelers, brokers and analysts estimate the insured losses will range between $20-$45 billion, and the gap between insured and economic losses demonstrates a lack of insurance penetration in The Golden State.
January consumer content round up
January is coming to an end; did you have the chance to review this month’s consumer content offered by PIA Northeast? Our consumer content provides an excellent conversation starter when it comes to introducing different types of insurance or business practices to your clients. Last month, your association published the following articles: a company-wide approach to cyber security and new technology to detect fraud.
N.J.: State of emergency over severe winter weather ends
New Jersey exited a state of emergency on Jan. 27, 2025, which it declared almost two weeks ago, on Jan. 18, 2025. This was due to severe winter weather that included heavy snow and dangerously low temperatures. Every winter, remember that PIA Northeast will keep its members updated on any winter storms that may affect the Northeast through its PIA Storm Info Central. The tool kit has numerous resources that you and your clients can use to prepare this winter.
N.Y.: DFS secures cyber security settlement with PayPal Inc.
The New York State Department of Financial Services Superintendent Adrienne A. Harris announced Jan. 23, 2025, that PayPal Inc.—PayPal—will pay a $2 million penalty to New York state for violations of DFS’s cyber security regulation. PayPal’s customers’ data was exposed after the company implemented changes to existing data flows to make IRS Form 1099-Ks available to more of its customers. However, the teams tasked with implementing these changes were not trained on PayPal’s systems and application development processes. As a result, they failed to follow proper procedures before the changes went live. This allowed cybercriminals to leverage compromised credentials to access Form 1099-Ks, which included sensitive customer data, including Social Security numbers. This is a reminder to every agent who does business in New York state: You may be affected by New York state’s cyber security regulation. Remember: You need to prove you were in compliance with the state’s cyber security regulations for 2024 by Tuesday, April 15, 2025. If you are licensed in New York state, this compliance needs to be completed each year. Do you need help? PIA Northeast members can contact the PIA Industry Resource Center, which can offer step-by-step directions to make this process easier. Call (800) 424-4244 or email resourcecenter@pia.org.
Compliance
It’s data privacy week: keep your information secure
The National Cybersecurity Alliance marks the week of Jan. 27-31, 2025, as Data Privacy Week. The alliance called to attention the many ways data is collected off of people: through computers, smartphones, cars and more. The goal of this week is to help people understand that they can manage their data—and help organizations understand why they should respect their users’ data. Some states’ insurance departments, like New York’s DFS, has urged its residents keep their data safe. To make sure they are following both state and federal rules regarding privacy and safeguarding information, PIA Northeast members can access Privacy Compliance Central.
N.Y.: DFS updates its declination forms for SSL insurance
New York state Insurance Law will require insureds to opt-in to supplemental spousal liability insurance for it to appear on their auto insurance policy, effective Wednesday, March 26, 2025. There is one exception: if the first-named insured indicates on the insurance application that he or she has a spouse, SSL coverage will be included in the policy automatically. The first-named insured still can decline the coverage by providing written notice to the carrier. The DFS has updated its Supplemental Spousal Liability Insurance webpage to include two Declination Forms one for use prior to March 26, 2025, and one for use on or after March 26, 2025.
Advocacy
PIA releases its 2025 policy priorities
PIA National’s Government Relations staff has reviewed PIA’s past policy positions and Congress’s current priorities, and, in consultation with PIA members across the country, has developed its 2025 Policy Priorities. These top items include the repeal or reform of the Federal Insurance Office, support of the federal crop insurance program, the reauthorization of the National Flood Insurance Program and more.
Technical
Findings from Market Trend Survey 2024
The 2024 Market Trends Survey—conducted across six Northeastern states—collected responses from more than 100 insurance professionals to gauge shifts in premiums, underwriting guidelines, remarketing efforts and nonrenewals across major lines of business. The survey, targeting trends in personal auto, homeowners, commercial property and commercial liability insurance, and specialty lines, offers a snapshot of evolving market dynamics in these regions. The 2024 Market Trends Survey reflects a slow—but steady—hardening of the market, particularly in personal and homeowners lines, and it offers valuable insights for agents seeking to adapt to these trends.
Breaking down the insurance of food breaking down
Everything organic decays. It’s gross, but it’s true—and under the right circumstances, fresh food can turn rotten quickly. A restaurant, bakery, food processor, warehouse, dairy, florist, cannery, meat packer, pharmaceutical, grocer and delicatessen all have potential exposures to spoilage loss. For more information about spoiled goods coverage and its exclusions, PIA Northeast members can access Spoiled goods coverage in the PIA QuickSource library.
N.Y.: Residential, commercial reconstruction costs on the rise
Verisk released a report highlighting reconstruction cost trends at the national and state level. For example, national residential reconstruction costs, including materials and retail labor, have increased 63.7% in the past 10 years (October 2014–October 2024). From October 2014 to October 2019, the average residential reconstruction costs increased by 19.8% nationally, with a range of 12.6%–26.9% at a state level—Washington, Nevada, Idaho, Oregon and Kentucky had the largest increases. Residential reconstruction costs continued to rise throughout the next five-year period, (October 2019–October 2024), averaging 43.9% growth nationally, with a range of 34%–44.9% at a state level. During this period, Rhode Island, New Hampshire, Montana, Utah and Idaho had the highest cost increase.
Educating insurance agents
Conn./N.J./N.Y.: Your important role in an insurance company
During your career as an independent insurance agent, you need to have a firm understanding of your role when you work with the carriers you represent, and you need to understand how different company functions are related. That’s why you should attend the 2024-2025 CIC ICO | Insurance Company Operations Institute Webinar with instructors Bruce DeJong, John Neal, CRM, and Mark A. Palinkas, CIC: this webinar will be held on Feb. 5-6, 2025. This class has been approved for CE credits in Connecticut (16 LH, 16 PC), New Jersey (16 GEN) and New York (15 BR, C1, C3, LA, LB, LSB, PA, PC).
Register now
Tuesday, March 4, 2025: NJYIP Swing and Connect
Wednesday, March 19, 2025: Connecticut Convention Welcome Reception
March 20-21, 2025: Connecticut Convention—Interested in sponsoring, advertising or exhibiting? Click here.
Tuesday, March 25, 2025: NY-YIP Pre I-Day Happy Hour
Wednesday, March 26, 2025: Buffalo I-Day
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Wednesday, May 7, 2025: NJYIP Golf Open
June 8-10, 2025: PIANJ | PIANY Annual Conference
Tuesday, June 10, 2025: NJYIP Fun Run
Tuesday, June 17, 2025: CTYIP Golf Open
Thursday, July 24, 2025: NJYIP Summer Reception
Monday, Aug. 11, 2025: NY-YIP Annual Golf Outing
