FOR IMMEDIATE RELEASE
DEPARTMENT AND ISO FINALIZE TERRORISM INSURANCE LOSS COSTS
Rumored 150% Increases Dramatically Reduced
Superintendent of Insurance Gregory V. Serio today announced that the Department has reached an agreement with the Insurance Services Organization (ISO) on terrorism loss costs for commercial property in New York State.
"The New York Insurance Department fought hard to ensure that New Yorks businesses not only had the availability of comprehensive coverages, but that these coverages did not come with a 150% increased price tag," said Serio. "The ISO proposal containing 150% rate increases has been rejected and we have agreed on a filing that is now more in line with other market standards. With the agreement on this filing, we anticipate that traditional admitted market risks may again find comprehensive coverages with the regulatory protections of admitted carriers."
The ISO filing contains loss cost charges that vary by territory, but caps any increases to 25% for any class or territory in the State. The loss costs for commercial property below 59th Street in Manhattan is 3 cents per $100 insured value (1.8 cents for habitational properties), for properties above 59th Street and in the outer boroughs the charge will be 1.8 cents per $100 of insured value and for the rest of the State, the charge will be .001 cents per $100 of insured value.
ISO is an
insurance advisory organization for admitted carriers. The admitted market is subject to
rate and form review of the Department and policyholders have access to the States
guarantee funds in the event of insurer insolvency.