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N.Y. Governor Signs Flex-Rating, Coastal Insurance Bill(BestWire Services Via Acquire Media NewsEdge) New York will restore flex rating to automobile insurers and make the New York FAIR Plan and Property Insurance Underwriting Association permanent under a bill signed by Gov. David Paterson. Insurance companies will be able to increase or decrease premiums by up to 5% annually without prior regulatory approval, under S-8624, which takes effect Jan. 1, 2009. Rates would still be filed with the superintendent of insurance and could be rejected if deemed unjustified. Flex rating existed in the state from the mid-1990s through 2001. "Increasing the availability of homeowners? insurance along the coast and encouraging greater competition in the private passenger auto insurance market will ultimately provide better products and more choices for New York state consumers,? Gary Henning, northeast region assistant vice president for the American Insurance Association, said in a statement. A coalition of consumer groups, including the Consumer Federation of America and the New York Public Interest Research Group, earlier released a statement opposing the legislation, calling it anti-consumer (BestWire, June 25, 2008). The Property Casualty Insurers Association of America applauded New York for joining Kansas, which adopted flex rating for personal lines earlier this year. Similar legislation is being considered in Connecticut, Georgia, North Dakota and Wisconsin (BestWire, June 25, 2008). While the flex-rating provision takes effect Jan. 1, measures to make the FAIR plan and the NYPIUA permanent take effect immediately, according to the AIA. The law also provides incentives for insurers to write coastal business. The act also reinstates an advisory panel on homeowners' insurance and catastrophe coverage, which will be tasked with reporting back to the legislature on an annual basis on ways to improve the homeowners' insurance marketplace for both insurers and consumers. The top five writers of homeowners multiperil in New York, according to A.M. Best Co. state/line data based on 2007 direct premiums written, are: Allstate Insurance Group, with a 18.2% market share; State Farm Group, with 15.2%; Travelers Group, with 11.1%; Chubb Group of Insurance Cos., with 10%; and Liberty Mutual Insurance Cos., with 6.7%. The top five writers of private passenger auto in New York, according to A.M. Best Co. state/line data based on 2007 direct premiums written, are: Berkshire Hathaway Insurance Group, with 22.2% market share; Allstate Insurance Group, with 18.9%; State Farm Group, with 10.1%; Progressive Insurance Group, with 7.6%; and Travelers Group, with 5.7%. (By Sean P. Carr, senior associate editor, BestWeek: [email protected]) Copyright ? 2008 A.M. Best Company, Inc. |