News
Review: US E&S growth slows but remains strong
Direct written premiums saw double-digit growth for the seventh straight year for U.S. excess and surplus insurers, according to Fitch Ratings’ latest annual market review. The U.S. E&S direct written premiums grew by 11% in 2024—down from 15% the prior year, but higher than the 8% increase for U.S. p/c insurers overall. This represented the 14th consecutive year of premium growth (seventh straight exceeding double-digits). This current growth spurt, which began in earnest in 2018, places E&S lines at 9% of the total p/c insurance, which is nearly double the segment’s share in 2017.
Connecticut releases credit ratings from Moody’s, Fitch
Gov. Ned Lamont and Treasurer Erick Russell announced that they have received notification from Moody’s and Fitch that both rating agencies are upgrading Connecticut’s bond ratings. Moody’s is upgrading Connecticut from “Aa3” to “Aa2.” Fitch is upgrading the state from “AA-” to “AA.” These upgrades mark the seventh and eighth credit rating increases during the Lamont administration.
N.Y.: State drought watch includes more counties
Gov. Kathy Hochul has directed the Department of Environmental Conservation to expand New York state’s drought watch to an additional 30 counties—bringing the total to 50 counties under a watch across the state. New York state encourages everyone in affected counties—particularly those dependent on private groundwater wells—to conserve water whenever possible during the coming weeks. A watch is the first of four levels of state drought advisories, which are watch, warning, emergency and disaster. No mandatory restrictions are in place under a drought watch.
Compliance
Conn. Supreme Court clarifies broker duties on nonrenewals
In a significant decision for Connecticut insurance professionals, the Connecticut Supreme Court has clarified the obligations of insurance brokers regarding policy nonrenewal notifications. The ruling in Deer v. National General Insurance Co., offers new guidance on a question that has vexed producers: What, if any, duty does a broker have to notify clients when their homeowners insurance policy is not renewed? PIA Northeast Director of Government & Industry Affairs Brad Lachut, Esq., reviews the court’s findings, its reasoning, the implications for insurance producers in Connecticut, and the implications for insurance producers beyond the state in a related article on PIA Northeast News & Media.
Connecticut’s minimum wage will increase in January
Gov. Lamont announced that beginning on Thursday, Jan. 1, 2026, Connecticut’s minimum wage will increase from the current rate of $16.35 per hour to $16.94 per hour. The change is required under a state law the governor signed in 2019 (Public Act 19-4) that connects the state’s minimum wage to economic indicators—specifically the percentage change in the federal employment cost index. Under that law, the minimum wage is required to be adjusted each year based on the U.S. Department of Labor’s calculation of the employment cost index for the 12-month period ending on June 30 of the preceding year. The commissioner of the Connecticut Department of Labor is required to review this percentage change and announce any necessary adjustments by October 15 of each year. Those adjustments must take effect on January 1 of the following year.
Advocacy
PIA-priority bill passes House Appropriations Committee
Earlier this month, the U.S. House Appropriations Committee passed the Financial Services and General Government Appropriations Act for Fiscal Year 2026—which begins on Wednesday, Oct. 1, 2025. Included in this bill is a policy provision from Rep. Scott Fitzgerald’s, R-Wis., Insurance Data Protection Act (H.R.3437). This provision would prevent funds for FY’26 from being used to implement, administer or enforce the Federal Insurance Office’s subpoena authority. The bill now will be considered by the full House of Representatives, where this provision will have to survive the rest of that process, and then pass the Senate. PIA strongly supports the Insurance Data Protection Act, and the association will continue to work toward its passage by the full House.
PIANJ pushes back on proposed ABC test rule
PIANJ, along with a coalition of other insurance associations, sat down with legal counsel for Gov. Phil Murphy earlier this week, to raise serious concerns about a proposed regulation from the New Jersey Department of Labor and Workforce Development. The topic? A sweeping new rule that would redefine the ABC test used to determine whether a worker is an employee or an independent contractor. Why this matters to agents: The ABC test is a legal standard used to decide if someone is truly an independent contractor or if the person should be classified as an employee. The proposed rule would expand how the test is applied across multiple labor laws, including wage, hour and sick leave laws. If finalized as written, the rule could make it nearly impossible for many independent insurance agents to maintain their independent contractor status. PIANJ isn’t against protecting workers from misclassification, and it offered formal comments to this effect. But this rule, as written, casts too wide a net and pulls in professionals who were never the problem. See more about PIANJ’s actions in a related article on PIA Northeast News & Media.
Technical
The value of carrier ratings, help PIA know who to track
An insurance carrier’s financial rating is fluid, so agents need a process to secure their carriers’ most updated information. For more information on why this information affects an agency, PIA Northeast members can access Carrier ratings: have the necessary process in place in the PIA QuickSource library. Need help? PIA Northeast members: Sign up for PIA’s Company Rating Tracking Service, and receive emails from PIA when one of your represented carrier’s AM Best rating changes. To participate, contact PIA’s Industry Resource Center by phone at (800) 424-4244 or by email at resourcecenter@pia.org with a listing of the carriers your agency represents. Please note: This alert is a product of PIA and is not affiliated with any service provided by AM Best. Also, help PIA Northeast keep updated on the carriers it should track—return your PIA Company Representation Survey. This survey allows PIA to keep members informed on company activities that have a direct impact on their agencies—such as an insurer insolvency, merger or acquisition. If you don’t have a copy of the survey, you can print it, circle the holding companies your agency represents and send it back to the PIA Industry Resource Center. Don’t forget to put your name and your agency’s name at the top of the survey.
NOAA’s updated flood mapping expands
The National Oceanic and Atmospheric Administration’s National Weather Service announced that its new Flood Inundation Mapping tool has expanded significantly to serve 60% of the U.S. population—up from 30% the previous year. The FIM provides near-real-time, high-resolution, street-level visualizations of flood waters to assist NWS forecasters in issuing flood watches and warnings. FIM services now are available to twice as many NWS weather forecast offices with new coverage for: Hawaii and the West Coast; portions of South Central Alaska, including the Cook Inlet, Kenai Peninsula, Copper River and Prince William Sound watersheds; The Southwest and Great Plains; and The Great Lakes, and interior Southeast. Educating your clients about flooding: Have you explained to your clients that flooding isn’t covered by a standard homeowners insurance policy? PIA Northeast members who are looking for help on how to answer their clients’ questions about flood insurance, can access the PIA Flood Insurance Tool Kit.
Educating insurance agents
Do you need your NYAIP certification?
Before insurance agents can submit applications to the New York Automobile Insurance Plan, they must complete a New York state-approved course on the NYAIP’s procedures. To help agents comply with this requirement, PIA Northeast offers NYAIP Producer Producers Course, which is next offered online on Thursday, Sept. 25, 2025, from 9:30 a.m.-1:30 p.m. Mishell Magnusson, CIC, CISR, CPIA, AAI, FIPC, will concentrate on common situations encountered when handling Plan business. She will navigate the New York Pass and the Auto Insurance Plan Service Office websites. The course will provide an overview of private passenger, commercial risks and other functions. Magnusson will examine a practical process of application completion, coverage effective dates, proper deposits, electronic binding, ID card handling, documentation processing and submission. This course has been approved for 4 BR, C3, PA, PC New York continuing-education credits. Register today.
Events
PIA National looks at where the industry is headed
PIA National CEO Mike Skiados will share leadership lessons and industry insights that he learned from talking with independent insurance agents across the country in a virtual event Tuesday, Nov. 4, 2025, from 2-3 p.m. Mike will discuss with Karl Newman, CEO and president of WSRB, what he’s learned from agents, carriers and communities nationwide. He’ll offer fresh perspectives on leadership, the evolving role of independent agents and where he sees the insurance industry heading next. Register today.
PIWA panel: Wholesale & Retail Distribution Dynamics
Are you a wholesaler who wants to know when and why retail agents reach out to the wholesale market? If you have questions about retail agents and how to better understand their needs—take part in PIWA’s upcoming panel discussion: Wholesale & Retail Distribution Dynamics on Thursday, Oct. 2, 2025, at Markel, from 2-4 p.m. The panel will be moderated by PIWA President Robert Farella, vice president, casualty, of Amwins. The event also will feature a presentation by Janet Pane, president & CEO of ELANY, who will discuss legislative and regulatory issues affecting the E&S industry. Register today.
Register now
Thursday, Sept. 18, 2025: TONIGHT: Autumn in the City: NY-YIP Fall Reception
Monday, Sept. 29, 2025: PIANJ Golf Classic
Thursday, Oct. 2, 2025: PIWA panel discussion: Wholesale & Retail Distribution Dynamics
Thursday, Oct. 16, 2025: The CTYIP Spotlight Social | A Fall Reception
Thursday, Oct. 16, 2025: PIANJ Deep Dive Live: Behind the Verdict: How Litigation Trends Are Driving Insurance Costs
Wednesday, Oct. 29, 2025: A PIANJ WLA Panel: Pursuing (or Pushing) Positive Change
Tuesday, Nov. 4, 2025: Virtual Event with PIA National CEO Mike Skiados
Tuesday, Dec. 2, 2025: NJYIP Holiday Reception
Save the date
Thursday, Jan. 29, 2026: PIANY MetroRAP
