N.Y.: Have you met TED (again)? 

As New York state’s budget season gets underway, the familiar alphabet soup of Albany returns—none more important to insurance professionals than the Transportation, Economic Development and Environmental Conservation budget, better known as TED. 

Gov. Kathy Hochul’s Executive Budget proposal includes a wide-ranging set of policy initiatives touching everything from transportation safety and utility regulation to consumer protections and environmental policy. However, buried within TED are several proposals that would affect insurance agents, insurers and policyholders across New York state directly. 

This year’s TED package goes beyond a single issue or line of coverage. Instead, it advances a broad effort to increase transparency, rein in costs, reduce litigation and incentivize risk mitigation—particularly in the personal lines market. 

Below is a look at the insurance-related provisions agents should be watching closely. 

Explaining premium increases 

One of the most consumer-facing proposals in this year’s TED would require insurers to be more transparent when premiums increase significantly. 

Under Part BB, insurers writing motor vehicle and residential real property insurance would be required to disclose—on the premium bill or declarations page—the amount of any increase from the prior policy period. When the total increase exceeds 10%, insurers also would have to provide a written explanation describing the primary rating factors that drove the change—excluding increases attributable solely to added insured value. 

If an explanation is not provided automatically, insurers must include a clear notice to advise policyholders that they may request one. Upon written request at renewal, insurers would have 20 days to respond. 

A new benchmark for homeowner insurance rates 

Another proposal takes aim at homeowners insurance profitability. 

Part CC would establish a benchmark loss ratio for homeowners insurance carriers with at least $10 million on average annual gross written premium in New York state. If an insurer’s actual loss ratio falls below the benchmark for two consecutive calendar years, the company would be required to refile its rates for prior approval. The superintendent of the New York State Department of Financial Services would first conduct a study to determine the appropriate benchmark.  

Mandatory premium discounts for risk mitigation 

Several TED proposals focus on encouraging loss prevention by requiring insurers to offer actuarially justified discounts. 

Under Part DD, insurers would be required to provide premium reductions for residential real property policies when policyholders make qualifying improvements, including: 

• fire prevention or mitigation measures, such as smoke detectors or sprinkler systems; 

• theft prevention measures, including dead-bolt locks and security systems; 

• water damage mitigation tools, such as smart water shutoff devices; and 

• roof replacement and wind-damage mitigation upgrades. 

Discounts must be proportionate to demonstrable reductions in loss and apply only to properties meeting applicable building codes or standards approved by the superintendent of the DFS. 

Similarly, Part II would require insurers to offer an actuarially appropriate auto insurance discount for vehicles equipped with dashboard cameras, with discounts supported by filed rates. 

Together, these proposals reflect a growing policy emphasis on risk mitigation rather than post-loss recovery—a trend that could shape underwriting and pricing discussions in years to come. 

Reducing litigation and no-fault costs 

Perhaps the most consequential—and controversial—proposal for the auto insurance market appears in Part EE, which targets what the administration describes as unnecessary litigation. 

The proposal would narrow the definition of “serious injury” under New York state’s No-Fault Law by eliminating the category related to short-term, nonpermanent impairments. It also would bar recovery for noneconomic loss unless a serious injury is proven and cap noneconomic damages at $100,000 in certain circumstances, including accidents involving uninsured vehicles, impaired driving or the commission of a felony. 

In addition, the bill would modify comparative negligence rules for motor vehicle personal injury actions. Supporters argue these changes could help control litigation costs and stabilize premiums, while opponents warn of reduced access to compensation for injured parties. 

Strengthening antifraud and reporting requirements 

Several provisions focus on insurer oversight and data collection. 

Part FF would give insurers additional time—60 days instead of 30—to report suspected fraudulent insurance transactions after determining that fraud may have occurred. The proposal also clarifies reporting standards for self-insured entities and adjusts rules related to timely payment of first-party benefits. 

Meanwhile, Part GG would require insurers covering multifamily residential buildings to file an annual report detailing premiums collected, claims paid and other data specified by the superintendent of the DFS. These reports would be published publicly—reflecting a broader push for transparency in housing-related insurance markets. 

Extending the auto insurance excess profit law 

Finally, Part KK would extend New York state’s auto insurance excess profit law through June 30, 2029. Under the current law, insurers must refund or credit policyholders when profits exceed a reasonable rate of return. 

While the law has been part of New York state’s insurance framework for years, its extension signals continued legislative interest in monitoring insurer profitability—particularly in the personal auto market. 

Looking ahead 

Taken together, the insurance-related proposals in this year’s TED reflect an aggressive policy agenda focused on transparency, affordability, litigation reform and consumer protection. As with all Executive Budget proposals, these measures will be negotiated and potentially amended as the legislative process unfolds. 

PIANY will continue to monitor developments closely and advocate for policies that promote a healthy, competitive insurance marketplace while preserving agents’ ability to serve their clients effectively. 

Stay tuned to PIA publications for updates as the budget moves forward—and as TED once again makes its presence felt in New York state’s insurance landscape.