Buffalo News: Another Voice: Liability bill will have drastic consequences for insurance market

By: Lisa M. Hussainov

New York’s insurance market is in dire straits, and the decisions made now will have far-reaching consequences for families and businesses throughout the Empire State.Earlier this year, the New York State Legislature passed a bill that would radically expand the wrongful death law, which threatens to plunge the insurance market into crisis. As an insurance professional dedicated to serving Western New York residents, I implore Gov. Kathy Hochul to veto this bill.

An analysis by Milliman, Inc., estimates that if this bill becomes law, premiums for personal auto and general liability insurance could increase by double digits. This is on top of already soaring insurance premiums and dwindling coverage availability.

Businesses that rely on general liability coverage may be forced to cut jobs and raise prices to cope with increased expenses. Our clients are currently facing an unprecedented increase in premium due to catastrophic losses, labor shortages, supply chain issues, and the already high litigation costs factored into renewal rates. If the expansion of the wrongful death law is enacted, I can assure you, every New Yorker will see their insurance costs increase.

The consequences of this legislation are not limited to individual families or small businesses. Medical professional liability insurance is projected to skyrocket by a staggering 40%. Such a dramatic increase will disproportionately affect critical health care providers. If the cost of insurance becomes prohibitive, many of these providers may be forced to leave private practice or the state altogether. The loss of essential medical services will put our communities at risk.

The purpose of insurance is to provide peace of mind to individuals and businesses alike. It ensures protection in times of need, whether it’s a car accident or a slip and fall incident. However, this bill threatens to undermine the very foundation of this security by driving up insurance costs to unsustainable levels.

New York’s auto insurance market is in a perilous state, with insurers increasingly limiting new business, non-renewing policies, and exiting the market completely. An alarming number of drivers are being forced to seek coverage from the assigned risk plan, the state’s insurer of last resort.

Consumers are faced with fewer options and soaring rates. Our insurance market is nearing the breaking point, and we need only look to California and Florida to understand the economic and human costs of a full-blown insurance crisis. We must not be next.

As she considers this bill, Hochul should examine the long-term consequences for all New Yorkers. It is not a question of whether justice should be served; rather, it is about finding a workable solution that ensures fairness for all parties involved, without jeopardizing the stability of our insurance market. The current wrongful death bill is not it.

Lisa M. Hussainov, CPCU is president at Big I Western New York, an advocacy organization that represents independent insurance agents.