NY First Committee Reviews Insurance Reform Proposals in Governor Hochul’s Executive Budget
The NY First Governing Committee met on February 25 to discuss the property and casualty insurance reforms included in Governor Hochul’s Executive Budget. NY First brings together property-casualty insurance company leaders and Big I New York member agents to collaborate on issues affecting the stability, accessibility, and affordability of New York’s insurance market.
The Governor’s proposed reforms are focused on addressing two major drivers of rising auto insurance premiums in New York: insurance fraud and abusive legal practices. These issues are increasingly being recognized at the state level as major contributors to the cost of coverage. As you know, New York drivers pay some of the highest auto insurance premiums in the country, with households paying significantly more for coverage than the national average.
Affordability has taken center stage in the public policy conversation, as evidenced by the Governor’s recent press conferences and statewide media campaign highlighting the need to reduce insurance costs for New York consumers. The Executive Budget includes several proposals intended to curb lawsuit abuse, combat fraud, and create a more stable insurance marketplace that ultimately benefits policyholders.
NY First Committee Chairs Kelly Gonyo of Blue Line Agency and Joe Latella of Travelers emphasized the importance of agents and carriers working together during this pivotal moment for the industry. Their message to the committee was clear:
Meaningful reform will require a unified industry voice to help policymakers understand the connection between legal system abuse, fraud, and the rising cost and reduced availability of insurance coverage.
The committee also discussed several additional proposals included in the Executive Budget and subsequent legislative discussions that raise concerns for both carriers and agents. In particular, members expressed strong opposition to the proposed loss ratio cap and Assemblymember Kavanagh’s proposed Homeowners Benchmark Loss Ratio Threshold, noting that such measures could undermine insurer participation in the market and ultimately reduce coverage availability for New York consumers. NY First members agreed that maintaining a competitive and sustainable marketplace requires policies that encourage insurer participation rather than restrict underwriting flexibility.
Big I New York has been leading the charge in Albany by activating our highly engaged membership base. Independent agents across the state have been meeting directly with lawmakers both in Albany and in their home districts to share real-world examples of how market conditions are impacting New York drivers and businesses. Big I New York has also provided testimony before the New York State Senate and continues to collaborate closely with industry trade associations to ensure the industry speaks with a coordinated and credible voice on these reforms.
Committee members agreed that this moment presents a unique opportunity for the insurance industry to educate lawmakers on an important reality:
When the insurance market is stable and accessible, consumers benefit from more affordable coverage and more competitive options.
We encourage NY First members to stay engaged in this effort. One of the most effective ways to support these advocacy initiatives is to participate in our Voter Voice campaigns and support IAPAC, which helps ensure the independent agent and insurance industry perspective is heard clearly by policymakers.
Big I New York is proud to lead this collaborative effort with our carrier partners and member agents, demonstrating the power of our network to advocate for reforms that will improve the insurance marketplace for all New Yorkers.
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