N.Y.: Bills would introduce insurance transparency and rate reform 

Two bills introduced by Sen. James Skoufis, D-42, are drawing attention in Albany and across New York state’s property/casualty insurance marketplace.  

While both focus on transparency and accountability, they take different approaches and carry distinct implications for insurers, agents and policyholders. 

Here is a breakdown of what each bill would do and where PIANY stands on each. 

Shining a light on insurance litigation 

S.9277 would require New York state’s Office of Court Administration to publish an annual public report to detail p/c insurance cases that were resolved either by settlement or judgment during the prior year. 

What would be reported 

The report would include: 

• the date a case was filed and resolved;  

• whether it ended in settlement or court judgment;  

• the amount of the settlement or judgment; 

• whether third-party litigation funding was involved;  

• the type of insurance coverage at issue; and  

• whether the case was decided by mediation, judge or jury. 

The report would not include any personal identifying information about policyholders. 

Why this matters 

Insurance affordability, particularly in the property market, has been a major topic of debate in Albany. Some stakeholders have pointed to large jury awards and outside litigation funding as possible contributors to rising premiums. However, there is currently no centralized, publicly available data to evaluate those claims. 

This bill is centered on transparency. By requiring publication of court data, lawmakers and stakeholders would have reliable information to assess litigation trends and their potential impact on the insurance marketplace. 

Impact on agents 

For independent agents and brokers, the bill would not create new compliance obligations. It would not change coverage rules, underwriting standards or claims handling practices. It simply would require the court system to publish information it already maintains. 

PIANY supports S.9277 because greater transparency helps inform sound public policy, and it encourages fact-based decision-making on affordability and market stability issues. 

Rate review and premium transparency changes 

S.9281 would make significant changes to how certain property insurance rates are reviewed in New York state, and it would affect how premium increases are communicated to consumers. 

While PIANY supports increased transparency for policyholders, it has expressed concerns about provisions that could slow the rate approval process and impact market stability. 

Key provisions 

First, the bill would require prior approval from the New York state Department of Financial Services before rates could affect commercial property insurance, commercial general liability insurance and personal residential property insurance. This would eliminate the current file and use system for these lines. 

Second, insurers would be required to provide policyholders at renewal with the amount of any premium increase along with a written explanation describing the primary rating factors or material changes that caused the increase. 

Third, the bill would require the DFS to establish benchmarks for homeowners insurance loss ratios and investment returns. If an insurer falls below the loss ratio benchmark and exceeds the investment return benchmark for two consecutive years, the insurer would be required to refile its rates and the DFS would mandate a rate reduction. 

What this means for agents and the market 

Moving from file-and-use system to prior approval for major lines of business could slow rate implementation. In a market shaped by catastrophe losses, inflation and rising reinsurance costs, insurers often need the ability to adjust rates quickly in response to changing conditions. 

A slower approval process may reduce flexibility and discourage insurer participation in an already challenging homeowners market. For independent agents, that could translate into fewer carrier options and more difficulty placing coverage. 

However, the written explanation requirement may help agents at renewal time. Clear communication about premium changes can improve consumer understanding and support more productive conversations between agents and clients. 

The mandatory rate reduction provision raises additional concerns. Tying rate reductions to benchmark profitability measures simplify complex market dynamics and could create uncertainty for carriers operating in New York state. 

PIANY supports the requirement for clear, written explanations of premium increases because transparency helps consumers understand their coverage and allows agents to better serve their clients. 

However, PIANY opposes eliminating the file-and-use system and opposes the mandatory homeowners rate reduction provision. The association also is concerned about how this bill would affect market flexibility, insurer participation and long-term stability. 

The bottom line 

Both bills center on transparency, but they approach it in different ways. S.9277 would focus on data collection to better understand litigation trends. S.9281 would increase consumer insight into rate changes while also restructuring how rates are approved. 

As Albany continues to debate insurance affordability and availability, independent agents should stay informed. Regulatory changes that affect rate approval, profitability benchmarks and market participation ultimately shape the options available to clients. 

Transparency is important. So is maintaining a stable and competitive insurance marketplace. The challenge for lawmakers is striking the right balance.