News
Report: P/C premium growth shows promise, but profitability at least a year away
According to the latest forecasting report—Insurance Economics and Underwriting Projections: A Forward View—from the Insurance Information Institute and Milliman, favorable first-quarter economic and underwriting results for property/casualty insurance are in line with projections that the industry will see a small underwriting loss in 2024 and achieve profitability in 2025.
Extreme storms like Beryl prompt rate hikes from insurers
The Associated Press has reported on the recent trend of increasing insurance rates in the face of stronger and more destructive hurricanes. For example, Hurricane Beryl was recorded as the earliest storm to develop into a Category 5 hurricane in the Atlantic: just last year, Hurricane Ian became one of the costliest storms in U.S. history, causing $118 billion in damages. In response to this, p/c insurers raise rates to compensate for these damages.
Heat wave grips the Northeast; help your insureds keep cool
The heatwave that has caused the American Southwest to swelter has drifted to the Northeast. Various spokespeople and state agencies in the region have issued warnings about the heat and any subsequent severe weather. If you have insureds who work in the heat or operate a business with inadequate cooling, speak with them about their insurance options and exposures. Extreme heat risk isn’t something to be taken lightly.
N.H.: Presidential declaration releases aid to four counties
Gov. Chris Sununu announced on July 10 that President Biden granted his request for a major disaster declaration in response to an April nor’easter that resulted in significant costs to local communities. Belknap, Carroll, Rockingham and Sullivan counties are included in the declaration. The Federal Emergency Management Agency, working with state and local emergency management officials, recently completed a Preliminary Damage Assessment, finding that the statewide cost for response efforts related to this event totaled over $6.5 million.
N.H.: Consumer guarantee contracts bill signed into law
The New Hampshire Insurance Department announced the passage and signing into law of S.B.515. This piece of legislation will enhance consumer protections through revised requirements for consumer guarantee contracts. This bill, sponsored by Sens. Timothy Lang, R-2, Howard Pearl, R-17, Daniel Innis, R-7, and Rep. Michael Moffett, R-9, received bipartisan support from both chambers in the Legislature and the backing of AARP. Gov. Sununu signed S.B.515 into law on July 3, 2024.
N.Y.: Gov. Hochul declares statewide state of emergency
On the evening of July 16, 2024, Gov. Kathy Hochul declared a statewide State of Emergency for New York in response to severe weather impacting communities across New York. The governor has deployed more than 50 members of the National Guard to provide assistance. Impacts from Tuesday’s severe weather event are being assessed in the Capital, Central and Northern New York Regions. Two Red Cross shelters have been opened, one in Oneida County and one in Madison County. Damage assessments to buildings and property have been ongoing since Wednesday night. A number of state routes are closed particularly in the Capital, Central New York and Northern New York regions due to downed trees and wires and flooding crews are working to re-open them.
Vermont deals with aftermath of Beryl
From July 10-11, the remnants of Hurricane Beryl released enough rain to trigger flooding in central and Northern Vermont. This has resulted in extensive damages, the deaths of two people, and the evacuation of more than 100 others. In reporting by VTDigger, Gov. Phil Scott signed an updated executive order temporarily lifting regulations pertaining to construction, debris removal, motor vehicle registration and work in streams and wetlands, in order to accelerate the state’s recovery efforts. On July 13, the state submitted a request for a Preliminary Damage Assessment from FEMA to determine whether the state qualifies for a federal major disaster declaration for flooding and resulting damage on July 10-11, 2024. The request requests assessments for both Public Assistance and Individual Assistance declarations. A PA disaster declaration provides 75% reimbursement to communities for responding to and repairing public infrastructure damaged by the storm. Assessments will be done in Addison, Orleans, Washington, Caledonia, Chittenden, Lamoille, Orange and Essex counties. An assessment by the state suggests damages to public infrastructure resulting from the storm to be more than $15 million.
Compliance
N.Y.: DFS adopts insurance guidance to combat discrimination in artificial intelligence
On July 11, the New York State Department of Financial Services Superintendent Adrienne A. Harris adopted guidance to protect consumers from unfair or unlawful discrimination by insurers using artificial intelligence: PIANY was one of the trade associations that reached out to the DFS for creating guidance in this matter. The use of external consumer data and information sources and AI systems can benefit insurers and consumers by simplifying and expediting insurance underwriting and pricing processes, however, it is critical that insurers that utilize such technologies establish a proper governance and risk management framework to mitigate the potential harm to consumers. The guidance outlines DFS’s expectations for how all insurers authorized to write insurance in New York state develop and manage the integration of predictive models.
N.Y.: New law targets insurance companies and affordable housing discrimination
On April 20, 2024, Gov. Hochul signed into law Chapter 56 of the Laws of 2024, marking a decisive change in how insurance companies can interact with property owners who house tenants utilize federal housing vouchers. According to an investigative report by the Gothamist, insurance companies routinely inquired whether building owners rented to tenants with housing subsidies, such as those utilizing the federal Section 8 housing program. These companies would then refuse to insure those buildings, placing both landlords and tenants in precarious situations, without insurance. Not only are these practices discriminatory, but they reduce housing options during a time when New York state is experiencing a scarce housing market.
Advocacy
PIA National submits comments to FEMA on proposed NFIP rulemaking, modernization
Late last May, PIA National submitted comments, concerns and recommendations to FEMA regarding a recently published Notice of Proposed Rulemaking. This NPRM was directed at the National Flood Insurance Program’s Standard Flood Insurance Policy, Homeowner Flood Form. In short, the NPRM is set to expand coverage options and make the NFIP more user friendly. However, while PIA does support these modernization efforts, it has a few questions and concerns about other areas of the NPRM. Read the full letter to FEMA here.
N.Y.: What bills did not pass this legislative session?
The 2023-24 legislative session in New York saw a flurry of activity, with legislators in both houses passing hundreds of bills. Despite this progress, several bills on PIANY’s radar did not pass the Legislature. Some bills passed one house but not the other, while others were not considered by either house. Here are some of the significant bills that failed to advance this session. These include an excess-line reform bill, a bill to qualify staged insurance accidents as Class E felonies, a bill requiring property owners to complete an anti-arson application to purchase property insurance and a bill amending renters insurance as to not discriminate against dog breeds.
Technical
AmGUARD Insurance Co. withdraws from personal-lines marketplace, effective July 8
In a significant move impacting the insurance landscape, AmGUARD Insurance Co. has announced its decision to withdraw from the personal-lines marketplace for admitted business nationwide, effective July 8, 2024. Most notably, this decision will affect homeowners and personal umbrella policies across the Northeast. AmGUARD communicated this decision via a notice to agency principals—emphasizing the strategic shift toward strengthening its focus on commercial-lines insurance.
AIE announces departure from New York insurance market
In a significant development for New York state’s insurance industry, Adirondack Insurance Exchange has announced its decision to exit the state’s insurance marketplace. This move comes as AIE faces ongoing financial difficulties and a deteriorating capital position. In an announcement by AIE, the carrier has been struggling with challenging market conditions, including a rapid rise in loss costs and an alleged unmet need for further rate increases. These factors have strained the company’s capital reserves, ultimately leading to the decision to withdraw from the New York state market.
How independent insurance agents can interpret the PAP furnished car exclusion
In instances in which insurance agents have an insured who is denied coverage based upon exclusion B.2 in Part A–Liability Coverage of the Insurance Services Office Inc. personal auto policy, it may seem like an open-and-shut case. However, coverage may be possible upon a closer look. PIA Northeast members can access Interpreting the PAP furnished car exclusion from the QuickSource library, which provides arguments against the basis of the denial of coverage.
Accolades
N.Y.: Eggert named Risk & Insurance Education Alliance CSR state winner
The Risk & Insurance Education Alliance announced recently that PIANY member Nicole Eggert, ACSR, of Mackoul Risk Solutions in Island Park, has been named one of its 2024 Outstanding CSR of the Year state winners. The Risk & Insurance Education Alliance, formerly the National Alliance for Insurance Education & Research, chooses these state winners to compete against each other to become one of five finalists for the National Outstanding CSR of the Year Award. PIANY congratulates Eggert, and the association wishes her luck.
Educating insurance agents
Conn./N.J./N.Y./Vt.: Maximize your CE with three webinars in one day
Independent insurance agents will have the opportunity to attend three education sessions in a single day, with Catherine L. Trischan, CPCU, CIC, CRM, AU, AAI, CRIS, ARM, MLIS, TRIP, leading these webinars. The classes will be held on Monday, Aug. 5, 2024. The first class is Insureds and Additional Insureds–Who’s Covered Under Commercial Policies?, which is from 8 a.m.-12 p.m., and has been approved for continuing education credits in New York (4 BR, C3, PA, PC), and has been submitted for CE approval in Connecticut and New Jersey. The next class is Time Management–Helpful Hints for the Insurance Professional, from 1-2 p.m., and it has been approved for CE credits in Connecticut (1 PC), New Jersey (1 GEN) and Vermont (1 General). It has been submitted for CE approval in New York. The final class is E&O Loss Prevention and Ethics–There is a Connection!^FF^UN, from 2-5 p.m. It has been approved for CE credits in Connecticut, New Jersey and Vermont. It has been submitted for CE approval in New York. ^FF^UN–This course has been approved for E&O loss prevention credit by Fireman’s Fund and Utica National. Call the PIA E&O Department for details.
Events
See you at the NJYIP Summer Breeze Bash
This summer, meet up with other insurance professionals at NJYIP’s Summer Breeze Bash. This event will be held on Thursday, July 25, 2024, at Proving Ground in Highlands, N.J., from 2-5 p.m. There, enjoy an afternoon of networking with your fellow industry leaders in the warm summer weather: be sure to enjoy the appetizers, open bar and raffles too! Don’t miss out, register now.
Register now
Thursday, July 25, 2024: NJYIP Summer Breeze Bash
Monday, Aug. 5, 2024: NY-YIP Golf Open
Wednesday, Aug. 14, 2024: CTYIP Summer Connections
Tuesday, Sept. 10, 2024: NY-YIP Albany Fall Soiree
Save the date
Thursday, Aug. 29, 2024: New Hampshire Symposium—sponsorship opportunities
Monday, Sept. 23, 2024: PIANJ Golf Classic
Thursday, Oct. 3, 2024: CTYIP Golden Gala Awards
Wednesday, Nov. 6, 2024: Hudson Valley RAP
Tuesday, Dec. 3, 2024: NJYIP Holiday Social
