Property/casualty insurance rarely gets the spotlight in a governor’s State of the State address. Most years, it’s a footnote—if mentioned at all.
However, this year is different. Gov. Kathy Hochul put home and auto insurance front and center, acknowledging what every insurance professional already knows: premiums are climbing, and the impact is being felt by families, businesses and communities across New York state.
Her proposals aim to tackle these challenges head-on with a mix of fraud prevention, transparency and consumer-focused reforms.
Auto insurance: Fighting fraud and lowering costs
If you’ve been following the numbers, you know New York state drivers are paying some of the highest rates in the country. The average monthly premium sits at about $336, which adds up to more than $4,000 a year—roughly $1,500 above the national average. In parts of New York City, the situation is even more extreme, with annual premiums topping $6,000. For many families, that’s more than 10% of their income just to keep a car on the road.
Hochul didn’t mince words about what’s driving these costs: outdated laws and rampant fraud. In 2023, insurers reported 38,270 suspected cases of motor vehicle insurance fraud, including nearly 1,800 staged crashes. These schemes aren’t just a nuisance—they’re organized, criminal operations that put lives at risk and inflate premiums for everyone. According to industry estimates, fraud adds about $300 a year to the average driver’s bill.
To address this, the governor is proposing a whole-of-government approach to crack down on fraud. That includes reinvigorating the Motor Vehicle Theft and Insurance Fraud Prevention Board and coordinating enforcement across the New York State Department of Financial Services, Department of Motor Vehicles, Division of Criminal Justice Services and the state police. Prosecutors would get new tools to go after not just the driver in a staged accident, but the organizers behind the scenes. Medical providers who sign off on phony diagnoses would face tougher licensure enforcement, and the state would target drivers who register vehicles out of state to skirt insurance costs.
Beyond enforcement, Hochul wants to tighten the definition of serious injury under New York state’s no-fault law, introducing objective medical standards to curb litigation abuse. She also is calling for limits on non-economic damages for drivers who were committing crimes—like driving impaired or uninsured—at the time of an accident. And in a move toward fairness, drivers who are “mostly at fault” would no longer be able to collect extensive damages, aligning New York state with common-sense rules in other states.
Transparency was another theme of the governor’s address. Insurers would be required to explain rate increases and notify policyholders in advance. To encourage safer roads, carriers would have to offer discounts to drivers who opt into telematics or other safety programs—provided those programs meet strict privacy standards.
Home insurance: Transparency and control to rising costs
Home insurance may not grab headlines like auto, but rising premiums are squeezing homeowners and housing providers alike. While single-family rates in New York state remain relatively stable, year-over-year increases are threatening affordability—especially for multifamily housing and rent-regulated properties.
The governor’s approach to home insurance mirrors her auto strategy: transparency, accountability and incentives for risk reduction. She’s proposing a first-in-the-nation profitability check for home insurers. Carriers that post outsized profit margins for two consecutive years would have to either lower rates or justify them to regulators. The goal is to ensure premiums reflect actual risk—not excessive profits.
Transparency extends to the multifamily market, where data is scarce. Insurers would be required to report annual metrics on claims, premiums and rates for multifamily housing. This information would be made public, giving property owners and policymakers a clearer picture of market trends.
On the consumer side, Hochul wants to expand automatic discounts for homeowners who invest in safety and resiliency upgrades—think fire suppression systems, security alarms, water damage prevention tools and wind-resistant roofing. Multifamily properties would see similar incentives for improvements like pressure-rated gutters and fire-suppression canisters. Insurers would have to inform policyholders about these discounts regularly and publish annual summaries so customers can compare offerings.
Finally, just like in auto, the governor is pushing for greater transparency around rate changes. Insurers would need to explain premium hikes and provide advance notice, giving policyholders time to plan and ask questions.
PIA Northeast perspective and advocacy priorities
For independent agents, these proposals are more than policy—they represent real changes that could affect how agents advise clients, manage risk and interact with carriers. PIA Northeast supports efforts to combat fraud, increase transparency and reward risk-reduction measures, but the association will be watching closely to ensure reforms don’t create unintended burdens for agents or consumers.
Some proposals included in the attached will be a part of the executive budget proposal the governor will release next week, some will become stand-alone legislative proposals, and some will fall by the wayside.
As these ideas move through the legislative process, PIANY will advocate practical solutions that protect consumers while maintaining a healthy, competitive insurance market. That means pushing for clarity in fraud enforcement, ensuring telematics programs respect privacy and monitoring any changes to damage caps and litigation thresholds to avoid disadvantaging policyholders.
PIANY also will engage in home insurance reforms—particularly around profitability checks and reporting requirements, to make sure they strike the right balance between transparency and administrative feasibility. The goal is simple: keep coverage affordable and accessible while preserving the role of independent agents as trusted advisers.
Stay tuned for updates as the executive budget is released, and legislative proposals take shape. PIA Northeast will keep you informed—and involved—every step of the way.
Joseph Ritchie
Joe Ritchie joined PIA Northeast as government and industry affairs coordinator for the Government & Industry Affairs Department in 2025, where he supports the association’s legislative, regulatory and member-advocacy initiatives across the Northeast. Prior to joining PIA, Joe served as the Advocacy & Policy Coordinator at Riverkeeper, working closely with municipal leaders, environmental organizations, and state agencies to advance clean water protections in the Hudson Valley. Previously, he worked as the Administrator of Government Affairs at Spectrum, where he managed statewide regulatory filings, supported broadband deployment efforts, and coordinated communications with policymakers. Joe also spent time in the New York State Assembly, assisting Assemblymember Kevin Cahill during his tenure as Chair of the Insurance Committee, where he contributed to committee meeting preparations, legislative research and constituent support. In addition to his government affairs work, Joe is the co-founder and Chair of Lights Out Norlite, a community-based environmental justice initiative focused on improving public health and industrial oversight in the Capital Region. He received his bachelor’s degree from Syracuse University and remains an active supporter of Syracuse Football. Outside of work, Joe enjoys cooking Italian meals for his wife, spending time with his family and camping throughout the Adirondacks.
