N.Y.: Part BB: A once-in-a-generation opportunity to improve premium transparency

In PIANY’s recent overview of Gov. Kathy Hochul’s Transportation, Economic Development and Environmental Conservation (TED) budget proposals, we outlined several insurance-related measures that could affect the personal lines marketplace in New York state significantly.

Now, we’re taking a deeper dive. This is the first in a series examining each proposal individually—what it does, why it matters and what’s at stake.

And, make no mistake: this moment is historic. It has been decades since a New York governor has included substantive insurance reforms in the Executive Budget. That alone makes this session different. It also makes engagement critical.

We begin with Part BB, a proposal focused on something producers deal with every single day: explaining premium increases to clients.

What it does

Part BB would require insurers writing personal auto and homeowners insurance to clearly disclose premium increases at renewal. Specifically:

If a total policy premium increases by more than 10% (excluding increases due solely to added insured value), the insurer would need to:

• show the amount of the increase on the premium bill or declarations page; and
• provide a written explanation describing the primary rating factors driving the increase.

If an explanation is not automatically provided, insurers would need to include a prominent notice telling policyholders they may request one in writing.

Upon written request, insurers would need to respond within 20 days with a written explanation identifying the primary rating factors behind the increase.

The law would take effect 90 days after enactment.

In short, Part BB increases transparency around premium changes in personal auto and homeowners insurance.

Why it matters

If you’re a producer, you already know why this matters. Every renewal season, you are the one fielding the call: “Why did my premium go up?”

In a market grappling with inflation, increased loss costs, litigation pressures and catastrophe activity, affordability is a growing concern. PIANY has made affordability a top legislative priority this session because consumers are feeling it—and so are you.

Part BB would not control rates. It would not cap increases. What it would do is require clearer communication about why premiums change.

That transparency matters for three reasons:

It supports consumer education. Producers spend countless hours educating clients about rating factors—claims history, credit (where applicable), driving records, loss trends, construction costs and more. This proposal reinforces that educational role by ensuring policyholders receive clear, written explanations directly from insurers.

It builds trust. When consumers understand what is driving pricing, frustration often decreases. Clear communication helps preserve trust in both the carrier and the agent.

It aligns with affordability efforts. Transparency is not a silver bullet for affordability—but it is a foundational step. Consumers who understand rating drivers are better positioned to explore mitigation options, coverage adjustments or other strategies with their agent.

For producers, this proposal does not replace your role—it strengthens it.

What happens if it fails

Because this is part of the Executive Budget, negotiations will unfold between now and Wednesday, April 1, 2026.

If proposals like Part BB are stripped from the final budget, the opportunity to modernize consumer communication standards could be delayed for years. Remember, it has been decades since insurance reform was included in a governor’s budget.

Moments like this do not come around often.

This is not just about one provision. It is about establishing that insurance affordability and market function deserve a place in high-level budget negotiations. If the insurance community is silent, that signal will be heard as well.

What you can do

Between now and April 1, PIANY members can make a meaningful difference.

No. 1: Participate in PIANY’s District Office Visit Program. Face-to-face conversations with legislators and staff are among the most effective advocacy tools available. Sharing real-world client stories about renewal conversations and affordability concerns helps policymakers understand the practical impact of their decisions.

No. 2: Respond to grassroots alerts. When action alerts are issued, take five minutes to respond. Personalized messages from local agents carry weight—especially when legislators are finalizing budget language.

No. 3: Share your experience. If you have examples of how premium transparency could improve consumer understanding—or stories that illustrate why clearer communication is needed—share them with PIANY. Real-world examples strengthen our advocacy.

This is bigger than one bill

Part BB may seem straightforward. In many ways, it is. But its inclusion in the Executive Budget signals something larger: insurance affordability and consumer communication are front and center in Albany.

For the first time in decades, insurance reform is part of the governor’s budget conversation. That makes this a once-in-a-generation opportunity to shape policy in ways that support producers, protect consumers and strengthen the marketplace.

PIANY supports Part BB because it would advance transparency, would reinforce the producer’s educational role and would contribute to a more informed insurance-buying public.

Now is the time to ensure lawmakers hear from the professionals who live this reality every day.

Stay engaged. Stay informed. And, most importantly—get involved.