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Broker compensation, withdrawal notices, and payroll reporting were on the agenda when Big I New York joined in a New York State Insurance Fund (NYSIF) meeting with insurance producers.
NYSIF held the November 5 meeting virtually with its producer advisory council. Attending on behalf of Big I New York were:
- President and CEO Lisa Lounsbury.
- Assistant Vice-President of Government Relations Travis Wattie.
- Doug Benz of New Buffalo Insurance Agency and a member of the Big I New York board.
- John Costello of USI Insurance Services in Rochester and past chair of the boards of Big I New York and the Independent Insurance Agents & Brokers of America.
- Chris McEvily of Keevily, Spero, Whitelaw in Harrison, a manager of several NYSIF safety groups.
Big I New York representatives addressed several concerns and operational issues to help producers better serve clients:
30-Day Withdrawal Notices: State law requires an employer wishing to withdraw from NYSIF to provide 30 days’ advance notice. Big I New York argued that this requirement can prevent clients from securing better coverage. It can also confuse certificate holders. Lisa Lounsbury emphasized that the rule creates an uneven playing field for private Workers’ Compensation carriers. It also often blocks businesses from obtaining coverage that better fits their needs. Members said delays in receiving competing quotes and confusion resulting from early withdrawal notices make the requirement impractical.
NYSIF maintained that the requirement helps them retain lower-risk clients to offset higher-risk policies. However, they agreed to explore clearer communication about the requirement. They also promised to distinguish between a potential cancellation and an actual cancellation in messages to certificate holders.
Compensation: Compensation remains a key concern, with producers urging NYSIF to recognize their value as partners. NYSIF reiterated that its mission is to provide coverage to New York employers at the lowest possible cost, noting that paying commissions could increase rates. Lounsbury emphasized, however, that offering commissions would benefit consumers, agents, and NYSIF alike by fostering greater competition and improving service.
Payroll Reporting: Several members expressed frustration with their inability to adjust payroll estimates after the initial submission to NYSIF. This issue is particularly challenging for new businesses. These firms often need to revise estimates as they gain a clearer understanding of their anticipated operations. Members emphasized that allowing early adjustments would improve payroll accuracy and reduce the likelihood of large refunds or shortfalls during audits.
NYSIF explained that they designed the current system to discourage customers from submitting multiple applications through different brokers. However, they acknowledged the concern and agreed that using accurate estimates from the outset benefits all parties. They committed to exploring potential solutions.
NYSIF Updates: NYSIF shared that, with 90% of NYSIF policies written for small employers, producers continue to play a vital role in helping businesses access affordable Workers’ Compensation coverage. They highlighted several programs, including:
- NYSIF Extreme Heat PPE Premium Credit Program.
- Insure+ Program for the veterinary and legal Industries. They plan to expand this soon for additional professional services.
- Health Care Sector Climate Credit.
- Likely expansion of the Waiver of Audit program to additional class codes. Big I New York offered to assist with any efforts to increase the waiver of audit premium threshold from $1,500 to $5,000.
They reported that more than 600 brokers are using IVANS after NYSIF contracted with the tracking platform.
NYSIF reaffirmed its commitment to collaboration and transparency. Both sides agreed to continue the dialogue, with a larger in-person broker event planned for spring 2026.