ALBANY, N.Y.—The Professional Insurance Agents of New York State Inc., applaud Gov. Kathy Hochul for signing two pieces of legislation into law that would expand the insurance marketplaces regarding weather-related events: parametric insurance and the expansion of eligibility for the Coastal Market Assistance Program. These bills were top legislative priorities for PIANY for the 2024 session.
The first new law (A.10344/S.9420) incorporates parametric insurance into New York state’s Insurance Law. Parametric insurance pays out based on predefined criteria—such as wind speeds, rainfall levels or earthquake magnitudes—which is triggered by official measurements of a specific event. This differs from traditional insurance models that require detailed damage assessments to determine the extent of a loss. The new law also requires that parametric insurance products are sold by licensed insurance professionals.
“Incorporating parametric insurance into state law opens the door for faster, more efficient claims payouts for policyholders affected by natural disasters in the state,” said PIANY President Richard Andrews, LUTCF. “It also ensures that parametric insurance products are sold by licensed insurance professionals, maintaining the same consumer protections as traditional personal-lines insurance.”
The second new law (S.8320/A.9821) expands the Coastal Market Assistance Program. C-MAP was established to help homeowners secure insurance in New York state’s flood-prone zones. Under the new law, the eligibility radius expands to one mile from the shoreline across all covered areas—including previously excluded freshwater shorelines (e.g., Lake Erie, Lake Ontario, the Saint Lawrence River and the Niagara River).
“The expansion of the eligibility radius acknowledges the growing risks faced by coastal and waterfront communities while ensuring more property owners can access vital insurance options,” said Andrews. “The law also refines shoreline definitions to adopt a practical approach to account for shifting coastlines due to climate change.”
The signage of these laws continues the success of PIANY this legislative session. A few weeks ago, Gov. Hochul signed legislation (A.2866/S.4199) to establish a standardized definition of windstorm for homeowners insurance policies.
###
PIA New York is the premier professional association for independent insurance agents, working to advance the needs of its members and be a leading voice in the insurance industry. PIANY provides members with the very best education, information, advocacy, and business tools possible.