New York City Comptroller's Auto Insurance Report Misses The Mark

New York, NY - The New York City Comptroller's policy report on the cost of automobile insurance fails to justify its claims, and makes recommendations that would actually hurt New York motorists, according to the American Insurance Assocation (AIA).

"This report doesn't support its political headlines," said David Snyder, AIA vice president and assistant general counsel. "The report tries to isolate a single year and draw conclusions that do not hold up over time."

"New York motorists have been enjoying premium reductions in most of the market. It is important to note, however, that New York's prior approval system of setting rates delays insurers' ability to respond to market conditions and lower rates quickly to be competitive," added Snyder.

"If New York's policymakers want a system that is more responsive to the ups and downs in insurance loss costs then they must give insurers the regulatory freedom to compete and respond to market conditions and trends," said Snyder. "The Comptroller's recommendations for more bureaucracy and rate filing procedures would do the exact opposite."

SOURCE: American Insurance Assocation (AIA)