Requires property/casualty insurance companies to submit certain data to the department of financial services and authorizes premium discounts to policyholders…

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

• Democratic8

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◆ The sponsor's argument

Why Brian Kavanagh says this is needed

The proprietary nature of insurers' rate-setting models creates a significant transparency gap for consumers and regulators alike. This gap has produced particularly severe consequences for affordable and nonprofit multifamily housing providers in New York, who face sharp increases in insurance premiums, shrinking coverage, and rising deduct- ibles that threaten long-term affordability. A New York Housing Confer- ence survey covering more than 130,000 units found average annual premi- ums reached $1,770 per unit in 2023, up 103% from $869 in 2017. Owners also reported liability limits reduced while premiums doubled and instances of coverage declinations tied to affordable housing status or location. In 2024, the Department of Financial Services issued guidance prohibiting discrimination against affordable housing in underwriting, underscoring the need for transparent market data to monitor compliance. This bill aims to address this gap through a three-part framework that protects insurers' proprietary modeling while creating a more informed and functional insurance marketplace. This bill requires comprehensive zip-code-level reporting on key market metrics including non-renewal rates, claim frequencies, and average premiums. By codifying these requirements into state law, this enables DFS to monitor market health, identify emerging risk, and provide consumers with information on their local insurance landscape. This bill recognizes that mitigation is crucial, as disaster prepared- ness not only safeguards lives and property but also supports the finan- cial solvency of New York's property and casualty insurers. In 2024, DFS encouraged insurers to offer loss mitigation tools and actuarially sound premium reductions tied to protective measures. This bill mandates that insurers publicly disclose detailed information about available discounts for mitigation efforts, similar to the National Flood Insurance Program's "mitigation tool" that provides personalized discount information based on property characteristics. Beyond improving data transparency, this bill addresses procedural gaps in the cancellation and nonrenewal process. Current notice requirements can sometimes not leave property owners with sufficient time to under- stand changes to their coverage or seek alternatives. This bill would extend notice periods to ninety to one hundred and twenty days and requires clear explanations for cancellations and nonrenewals, prevent- ing coverage gaps and ensuring policyholders can make informed deci- sions. The bill also addresses geographic discrimination by prohibiting insur- ers from discriminating against buildings located in disadvantaged communities as defined in environmental conservation law. Insurers who cancel, refuse to issue, or refuse to renew policies in these communi- ties must provide actuarial justification for such decisions, creating accountability and ensuring that those already facing environmental and economic challenges are not further burdened by discriminatory insurance practices. As climate change and market pressures drive more New Yorkers toward the state's insurer of last report, governance of the New York Property Insurance Underwriting Association (NYPIUA) requires enhanced oversight. The FAIR plan currently holds 20,669 residential policies and 1,556 commercial policies, representing $7.6 billion in exposure. As adverse selection concentrates higher-risk properties onto the FAIR plan, the potential for catastrophic losses grows. This bill strengthens gover- nance by expanding the NYPIUA board from thirteen to twenty-three members, with six appointed by the legislature and four by the Governor, and requires reporting every four years on the policies written, geographic distribution, coverage limits, and financial standing. While FAIR board members are intended to represent public interests, ten of thirteen current members come from the insurance industry. This bill brings New York in line with neighbori

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.