New York Considers Making Property Insurers Cover Taxi Claims Losses

New York is considering asking spot and casualty insurers to screen nan claims of insolvent taxi insurer American Transit Insurance Co., according to group acquainted pinch nan plans.

That measurement is 1 of respective options nether chat arsenic nan state’s Department of Financial Services — which regulates insurers — grapples pinch mounting financial troubles astatine New York City’s biggest insurer for taxi and rideshare drivers.

DFS would usually see drafting from nan Public Motor Vehicle Liability Security Fund aliases nan Property Casualty Insurance Security Fund if an admitted insurer successful New York is underfunded to meet its upcoming claims.

A imaginable merger of those 2 costs was discussed successful a November gathering of taxi-industry stakeholders and authorities officials, said group acquainted pinch nan matter, asking not to beryllium identified because nan talks were confidential. But their mixed $300 cardinal arsenic of March 2023 stay insufficient to salary for each nan claims that ATIC can’t screen pinch its assets. Those stood astatine astir $670 cardinal arsenic of nan extremity of September.

So nan authorities is considering levying a one-time appraisal connected different insurers to thief screen ATIC’s claims, according to nan people.

“The Governor’s agency has started to convene stakeholders, including each levels of government, drivers, and nan livery manufacture to talk nan issues and perceive their proposals successful bid to trade a broad scheme that protects drivers and passengers and minimizes disruption to livery services,” said Kristin Devoe, a spokesperson for New York Governor Kathy Hochul.

While a payer bailout isn’t likely, consumers could still extremity up footing immoderate of nan measure if insurers walk connected nan costs from having to screen for ATIC, according to Matthew Daus, a erstwhile commissioner astatine nan Taxi and Limousine Commission regulatory agency. Daus, who is presently a partner astatine rule patient Windels Marx focusing connected its proscription practice, was not coming astatine nan gathering but said he is privy to nan specifications from attendees.

November Meeting

The imaginable options to thief woody pinch nan ATIC insolvency were discussed astatine a Nov. 12 gathering that included Adrienne Harris, DFS’s superintendent, and Albert Pulido, nan state’s lawman caput for finance and technology, according to nan people.

Attendees included representatives of Uber Technologies Inc., Lyft Inc., nan livery assemblage and driver groups, nan TLC, and nan American Property Casualty Insurance Association, according to 1 of nan people.

With astir security policies renewing adjacent February, nan authorities besides discussed astatine nan gathering different options to support nan manufacture patient and charismatic for carriers going forward, including ways to trim security fraud, nan group said.

The meeting, which lasted for hours, didn’t output immoderate last decisions, but nan authorities has asked attendees to taxable proposals successful writing, according to nan people. Uber, Lyft and nan New York Taxi Workers Alliance confirmed they attended nan meeting.

While ATIC has said it’s moving to reconstruct its longstanding rumor of solvency truthful that nan broader marketplace isn’t negatively affected, DFS has besides pushed ATIC to research a waste and to find capital.

At slightest 2 firms have expressed liking successful taking complete immoderate of ATIC’s assets, including Marblegate Asset Management — a $3 cardinal finance patient which is besides nan city’s biggest medallion proprietor and lender — and integer security startup Inshur.

But DFS told attendees astatine nan November gathering that it has not yet received immoderate reliable offers, 1 of nan group said.

Separately connected Wednesday, NYC’s taxi regulator held a nationalist proceeding connected changes it plans to make to require taxis and rideshare vehicles to beryllium covered by an security argumentation issued by a “solvent and responsible” company. Uber pushed backmost connected nan language, saying it lacks circumstantial meaning and risks leaving thousands of drivers uninsured.

TLC Commissioner David Do said nan rules “will proceed to let American Transit to renew and rumor caller policies arsenic agelong arsenic they travel nan DFS rules and procedures.” His agency will proceed to activity pinch nan DFS and authorities policymakers “to support nan semipermanent stableness of nan taxi and for-hire security market,” he said.

Photo: A personification gets connected a taxi extracurricular Penn Station successful New York, US, connected Thursday, Sept. 5, 2024. New York’s security regulator issued a damning study laying retired nan terrible financial information of nan city’s largest insurer of taxis and for-hire vehicles, arsenic good arsenic dozens of imaginable financial improprieties and accounting problems, informing that nan consequences of nonaccomplishment could beryllium devastating for tens of thousands of drivers. Photographer: Yuki Iwamura/Bloomberg

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Topics Carriers Profit Loss Claims New York Property