NEW YORK INSURANCE ASSOCIATION CONGRATULATES INSURERS ON SANDY RESPONSE

The New York Insurance Association (NYIA) has congratulated the industry on an exemplary response to superstorm Sandy, only days after New York State Governor Andrew Cuomo announced an investigation into unacceptable claims standards at insurers Narragansett Bay, Tower and Kingstone. The three insurers were the subject of a higher number of consumer complaints on average to New York's Department of Financial Services (DFS), largely centring on their alleged failure to send adjusters to inspect properties and their failure to process claims quickly. The DFS has requested further information from the three companies, which they are legally required to supply. New York rules require insurers to make a decision on a claim within 15 business days of completing the claim investigation or to inform policyholders by letter of the reason they cannot meet that deadline. Now the DFS has asked insurers to detail the number of extension letters they have sent out. In testimony to the New York assembly standing committee on insurance hearing, NYIA president Ellen Melchionni said that insurers had responded well to a difficult situation. She said that a historically high number of claims had been filed , and that 94% of claims had been closed, with a 99% satisfaction rate.