Yearly Archives: 2024

Workers Comp Loss Costs To Drop 9% in October

​New York Workers' Compensation insurance loss costs are set to decrease by an average 9% this fall according to a recent action by the state Department of Financial Services (DFS.) The New York Compensation Insurance Rating Board​ (NYCIRB) announced last week that DFS had approved its new loss cost filing, effective October 1, 2024.Loss costs are values calculated by the NYCIRB and, for each rating classification, include provisions for:Expected lossesLoss adjustment expensesTerrorismNatural disasters, andCatastrophic industrial accidents.They are not rates. Individual insurance carriers and the New York State Insurance Fund (NYSIF) must apply additional factors, known as "loss cost multipliers," that include provisions for carrier overhead expenses…

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Big I NY Leaders Meet With NYDFS To Voice Alarm Over the Market

Leaders and staff from Big I New York yesterday warned the New York State Department of Financial Services (DFS) that the New York personal insurance market is tipping into crisis.The meeting on late Thursday, July 26, 2024 included:Agent leaders David Bodenstein, Chair of the Board; Kelly Gonyo, Vice Chair & Secretary/Treasurer; Ron Brunell, National Director.Association staff Lisa Lounsbury and Tim Dodge.DFS representatives including Executive Deputy Superintendent of Insurance, Bhava Agnihotri.Big I New York shared current market data on the profitability of personal lines business and per capita costs of insurance in New York versus those in neighboring states. We also presented data on the increase…

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Adirondack Insurance Exchange, Mountain Valley Advise Clients To Replace Their Policies

​New York based insurer Adirondack Insurance Exchange (AIE) and its affiliate Mountain Valley Indemnity Co. (Mountain Valley) have reported financial trouble. They have advised policyholders to seek replacement coverage immediately.AIE's financial strength rating from rating firm Demotech was withdrawn on May 28. The carrier told its agents at the time that: It was suffering from a surplus shortage and deteriorating capital. Their premium rates had not kept pace with rising loss costs. Mountain Valley's Demotech rating was withdrawn on July 18. On July 11, AIE informed its agents that its financial condition had worsened. They advised agents to begin replacing their AIE policies immediately. Last…

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