Big I New York met with the New York State Department of Financial Services (DFS) Deputy Superintendent of Insurance Bhavna Agnihotri and other DFS leaders on Monday regarding the state of the homeowners insurance market. The conversation focused on market disruptions expected when thousands of Adirondack Insurance Exchange and Mountain Valley Indemnity Co. policies are cancelled on December 31, 2024.
Big I NY President and CEO Lisa Lounsbury, AVP of Government Relations Travis Wattie, and AVP of Research and Information Tim Dodge expressed continued concerns around the homeowners insurance market and anticipated challenges resulting from the mass December 31 cancellations.
DFS said that they have been working with these insurers to “over-communicate" with affected policyholders about the upcoming cancellations. As DFS also regulates the state-chartered banking industry, they have been informing mortgage lenders about the implications of the situation. Lastly, they are monitoring incoming consumer complaint activity for any signs that the insurers are not meeting service performance standards, particularly regarding claims handling.
The department reported some measures that should have long-term positive effects. These included the hiring of additional actuaries to speed up the review of carrier rate and form filings. In addition, they said that they will ask the state legislature to give them new authority. The proposed bill would permit DFS to hire outside consultants to review filings when examiners’ workloads become untenable.
For detailed background and agency resources on this matter, please visit Big I NY December 12, 2024 post regarding Adirondack and Mountain Valley
We expect regular meetings with DFS about the state of the market to continue into the new year.