Testifying at a Senate Insurance Committee hearing, IIABNY Chair Stephen R. Zogby explained that insurance company market restrictions, such as canceling and non-renewing policies in Westchester County, New York City and Long Island, made it difficult for “consumers trying to find adequate coverage” to protect their homes.
The 125-year-old trade association has played a pivotal role in developing alternatives during the market decline, which began in February, 2006 with Allstate’s decision to cancel and non-renew policyholders in the so-called “hurricane counties” of New York state. “We have been working with the insurance companies,” said Zogby, “and have developed a list of critical areas that must be addressed.”
Zogby appeared at the Senate Hearing with four Suffolk County agents representing IIABNY member agencies: George Yates of Dayton, Ritz & Osborne, East Hampton; Thomas Crowley of Maran Corporate Risk Associates, Southampton; Michael Romeo of Industrial Coverage Corp., Medford; and Jeffrey Rehm of East End Insurance Services, Southold. Romeo is also president of the Independent Insurance Agents & Brokers of Suffolk County. The hearing took place at Suffolk County Community College, in Brentwood, New York.
Zogby called on the Legislature to make permanent the New York Property Insurance Underwriting Association and to encourage insurers to use the wrap-around policy option in conjunction with NYPIUA policies. He also urged Congress to create a national catastrophe fund and to permit insurers to set aside reserves for future catastrophe losses on a tax-deductible basis. Finally, he encouraged the New York Insurance Department to recognize insurers’ use of computer catastrophe models in rate-making; standardize the triggers for activation of windstorm deductible clauses; and give insurers greater flexibility in the degree and timing of rate changes.
“We need to find new markets and capital for New York State and assist insurance companies through regulatory and legislative channels,” Zogby said, “making our state an attractive place to invest underwriting capital.”