New York Senate Bill S08583

New York 2025-2026 Regular Session

• Introduced: 11/17/25
• Refer: 11/17/25
• Refer: 1/7/26

Caption

Requires property/casualty insurance companies to submit certain zip code-level data to the department of financial services on nonrenewal rates, nonpayment cancellation rates, other cancellation rates, claim frequency rates, average claim amounts, paid loss ratios, and average premiums; requires property/casualty insurance companies that use a natural disaster risk model or scoring method to assign risk, information about such model or scoring method; authorizes a premium discount to policyholders of homeowners insurance or property/casualty insurance applicable to residential real property who demonstrate certain mitigation actions; requires insurers to post about such discounts on their public websites; relates to the timing of cancellation and nonrenewal notices for certain insurance policies; relates to increasing membership of the board governing the New York property insurance underwriting association; requires a quadrennial report on the activities of such association; increases such board membership to 23 including 6 directors appointed by the legislature and 4 directors appointed by the governor.

Impact

Significantly, the legislation requires insurers who utilize natural disaster risk models or scoring methods to provide information regarding these tools and their impact on insurance rates. It also allows for premium discounts for policyholders who undertake specific mitigation actions, thus encouraging homeowners to invest in safety improvements which could reduce their risk profile in the event of disasters. Furthermore, it calls for an annual report on the housing insurance market, ensuring that multifamily and nonprofit housing providers are looked after in terms of insurance availability and affordability.

Summary

Bill S08583 introduces several amendments to the insurance law in New York that aim to improve the regulation and transparency of the property and casualty insurance market, particularly in relation to natural disasters. The bill mandates property/casualty insurance companies to disclose detailed zip code-level data regarding nonrenewal and cancellation rates, claim frequencies, average claims, and loss ratios to the Department of Financial Services. This information is meant to enhance the department's ability to oversee the insurance market and ensure fair practices in the face of natural disaster risks.

Conclusion

Overall, S08583 aims to not only regulate but also incentivize proactive measures against natural disasters which can significantly impact New York's real estate and insurance markets. By creating a framework where insurance companies must disclose more information and reward proactive safety measures, the bill seeks to enhance consumer protection while also aiming to stabilize the insurance market amid changing environmental challenges.

Contention

One notable point of contention stems from the balance between regulatory oversight and insurance company autonomy. Proponents of the bill argue that increased transparency and the provision of data to the public are essential in addressing disparities in insurance practices, especially in areas frequently affected by natural disasters. Opponents, however, may view the stringent reporting and disclosure requirements as burdensome, potentially complicating business operations for smaller insurers. The requirement for insurers to publish information on mitigation discounts could also raise concerns regarding the enforcement of standards and equality in benefits offered to policyholders.