The Professional Insurance Agents of New York (PIA New York) welcomed remarks by Kathy Hochul that placed property and casualty insurance at the centre of her State of the State address, a move the association said reflects the mounting pressure facing New York’s insurance market.
For independent agents, the visibility mattered. Property and casualty insurance rarely receives sustained attention at that level, despite rising costs shaping household and business decisions across the state.
Governor Hochul has addressed rising insurance costs in NY, focusing heavily on health insurance premium hikes due to expiring federal subsidies (threatening 40% increases) and pushing anti-fraud measures for auto insurance, blaming fraud/litigation for auto rate increases.
While these specific announcements focus on health and auto, the general concern is rising costs across property/casualty, with her administration targeting issues like insurance fraud (auto) and advocating for federal support to keep premiums down for New Yorkers.
Key Actions & Statements by Governor Hochul:
- Urges Congress to extend Affordable Care Act (ACA) subsidies, warning that their expiration could raise average premiums by nearly 40% for New Yorkers.
- Highlights the negative impact of losing federal credits on enrollment and affordability via NY State of Health.
- Proposes measures to combat staged crashes and insurance fraud, which she claims add significant costs (up to $300/year per person) to everyone’s premiums.
- Links rising costs to federal inaction and emphasizes the need for action to protect New Yorkers from unaffordable premiums across various sectors, as seen in her statements on healthcare costs
Jason Bartow, president of PIANY, said the governor’s proposals align with what agents encounter daily as premiums climb and consumers struggle to absorb the increases.
He said the association supports efforts focused on fraud prevention, clearer market rules, and reforms aimed at consumer outcomes rather than short-term fixes.
Gov. Hochul’s proposals reflect what independent agents see every day: premiums are climbing, and consumers are feeling the strain.
Jason Bartow AAI, CPIA, TRA, president of PIANY
“We welcome the governor’s commitment to tackling these issues through fraud prevention, transparency and consumer-focused reforms,” said Jason Bartow AAI, CPIA, TRA, president of PIANY.
Auto insurance sits at the sharp end of the issue. New York drivers pay among the highest rates in the US, averaging about $336 per month, or more than $4,000 annually.
In some parts of the state, premiums run past $6,000 a year. PIANY points to fraud and outdated legal frameworks as major cost drivers, adding hundreds of dollars to the average policy.
The association backed Hochul’s call for a coordinated, statewide response to insurance fraud, including stronger enforcement, renewed oversight boards, and tougher penalties tied to staged accidents and fraudulent medical claims.
PIANY said it will closely track proposals affecting no-fault insurance and damage caps, with an eye on consumer protection and market stability.
Bartow said PIANY plans to press for practical reforms that keep coverage affordable and available without weakening competition or creating unnecessary administrative burden.
He said the group will also push to protect consumer privacy and preserve the role of independent agents as trusted advisers rather than compliance intermediaries.
As these proposals move through the legislative process, PIANY will advocate for practical solutions that keep coverage affordable and accessible while preserving a healthy, competitive insurance market.
“We will work to ensure reforms respect consumer privacy, avoid unnecessary administrative burdens and maintain the vital role of independent agents as trusted advisers,” Bartow said.
PIANY urged lawmakers to work alongside industry participants as proposals move through the legislative process. The association said it will continue engaging as the executive budget emerges and detailed legislation begins to take shape.
