New York Insurance

New York State insurance regulatory authorities yesterday an increase of 19.5 per cent of auto insurance premiums for those with the worst records of conduct, but insurance executives, said the increase was far below what was needed.

The insurer had requested an increase of nearly 80 percent say their losses have been high, especially because of a surge in fraudulent claims.

The increase is the same for about 350000 New York’s estimated 8.6 million motorists. But several insurers have increased their prices for most of their customers in New York by an average of 10 to nearly 15 percent at the end of last year, and industry experts said that the ‘insurer was likely to ask regulators for further increases next month.

New York leaders saw with horror on the Hudson River, New Jersey, for years the most expensive state in the country for auto insurance. Well, industry experts say, New York, may exceed its neighbours, the State, in the first cost is a major political issue. Winning doubtful that the only distinction would be a stigma for the administration of George E. Pataki Dir.

Mr. Pataki wants this election year, and increased insurance costs of self major political problem. Its management has helped keep the premium low cost, in order not to offend millions of voters. But self-insurers say they are either to increase their prices or to consider New York as they do already, New Jersey.

In New Jersey, several insurers, including State Farm, the largest auto insurer in the state, they say slip, because politicians do not allow them to increase their prices to earn enough profits.

J. Robert Hunter, director of insurance for the Consumer Federation of America, said when fraudulent claims were indeed a serious problem in New York, General of the premium increases schien”leicht high.”He said that demand an increase of 80 per cent for the driver with geringen”war incredibly high.”Mr. Hunter, a former insurance commissioner in Texas, said that a general increase of 8 to 10 percent was probably enough.

He said that administrators of public programs held throughout the country for drivers with bad Aufzeichnungen”tendenziell”Übereifer at the request of price increases. You demandez”à 80 per cent, if 20 percent or 25 percent of what people are doing,”he said.

The number of drivers in the so-called risk plan for low data rate has doubled within two years, until the presence of 350000 pilots. They pay about 50 percent more for their reports that most drivers, industry experts said. Most drivers in New York to pay approximately $ 1000 per year, but coverage can be much more expensive in New York City. And drivers of the city and in other urban areas account for a disproportionately large share of those in terms of risk involved.

The number of drivers in the plan has been developed, because insurers are not able to raise prices, as they say, is necessary, its rules have been tightened for reporting, only profitable customers. Until recently, insurers were to sell the policy for people maybe one or two small accidents. Now they refuse to cover, forcing drivers to risk associated plan.

Insurers also want to see the price increase awarded in terms of risk, because the rule of law, they share the costs of coverage to divide. If the project is losing money because there has been in recent years, insurers will lose money.

Robert P. Hartwig, chief economist at the Insurance Information Institute, said that insurers Push clients to plan risks have been transferred, waiting for their higher prices to cover higher losses of conduct more risky.

But in these days, the plan disbursement of more than it collects. Thus, insurers expect more than 19.5 per cent of the Superintendent of Insurance, Gregor V. Serio.

Joseph Jr. Termini, is responsible for the hotel business in New York for the National Association of Independent Insurers, said:”We are disappointed.”But he added:”The alternative not getting any increase would have been catastrophic.