NEW YORK LAWMAKERS CAN PROTECT CONSUMERS FROM RISING COSTS AND AVOID HAMSTRINGING A FLOURISHING MARKET

The following information was released by the National Association of Mutual Insurance Companies (NAMIC):

Today, Erin Collins, Senior Vice President, State and Policy Affairs at the National Association of Mutual Insurance Companies (NAMIC), issued the following statement after testifying at a joint public hearing held by New York State Senators Bailey, Kavanagh, and Skoufis:

The National Association of Mutual Insurance Companies (NAMIC) testified at todays hearing on the cost and availability of residential property insurance in New York issuing strong objections to the premise that additional government intrusion, like Sen. Brian Kavanaghs newly introduced bill, S8583, will make insurance more affordable or available. Regardless of how well-intentioned, such measures that create artificial impediments to bringing and keeping insurance products into New York will take the market down the wrong path.

New Yorks homeowners insurance market is already among the most competitive and stable in the nation, ranking 30th in average premium cost and 22nd relative to household income, with 231 insurers actively serving consumers in the state. This robust competition ensures fair pricing and market stability. S8583, which mandates extensive data reporting, imposes new regulatory requirements, and expands state control over underwriting processes, risks undermining this strength. These measures will increase compliance costs, reduce flexibility, and ultimately drive carriers away, which in turn shrinks consumer choice and pushes rates higher.

The real drivers of rising costs are clear:

Extreme Weather 95 billion-dollar disasters have struck New York since 1980.

Inflationary Pressures Higher rebuilding costs mean higher claims costs.

Litigation Abuse New York ranks second nationally for legal system abuse, inflating costs for all policyholders, according to the American Tort Reform Foundation.

These systemic challenges cannot be solved by layering on more regulations. Overreach becomes a cost driver itself, suppressing competition and ultimately harming consumers.

NAMIC urges policymakers to focus on mitigation and resilience, rate flexibility, and legal reform solutions that address root causes rather than creating new barriers. Cross-subsidization concerns are unfounded; rates are regulated at the state level and based solely on New York-specific data, ensuring fairness and transparency.

Bottom line: S8583 and similar proposals will not make insurance more affordable or available. NAMIC stands ready to work with policymakers to implement meaningful reforms and make New York a national leader in addressing insurance affordability and availability.