New York Homeowners Face Rising Premiums Amid Strong Insurer Profits

Homeowners in New York are experiencing increases in insurance premiums despite insurance companies reporting strong profits in the state. Lawmakers have raised questions about whether New York policyholders are subsidizing losses in other states, as extreme weather events such as hurricanes and wildfires continue to impact the homeowner's insurance market nationwide. Data from credit rating agency A.M. Best indicates that New York insurers spent about 74 cents of every premium dollar on claims and expenses in the previous year, significantly lower than the national average of 91 cents. This suggests stronger underwriting results and higher profit margins for insurers operating in New York compared to the broader U.S. market. The state has a large number of insurance carriers, with over a thousand companies serving policyholders, further indicating a competitive and profitable market. However, industry representatives highlight challenges including litigation, fraud, increasing severity of weather events, aging infrastructure, and rising material costs. New York's Department of Financial Services (DFS) plays a critical role in balancing affordability for homeowners with ensuring a stable insurance market. Acting Superintendent Kaitlin Asrow emphasizes the regulatory responsibility to review insurance rates on a carrier-by-carrier basis and to prevent insurers from attributing out-of-state losses to justify rate increases. Lawmakers have requested greater resources and staffing for DFS to conduct more thorough analyses before approving rate hikes. The state senate is expected to issue a comprehensive report and recommendations on this issue early next year. Overall, while New York's premiums remain lower than the national average when adjusted for home values, there is increased scrutiny on how insurance profitability is distributed across states amid a challenging and evolving risk environment caused by extreme weather and other factors.