4 ms·

New York City's Biggest Taxi Insurer Is Insolvent, Risking Transit Meltdown

18 points by taylorbuley 2y ago

0cf8612b2e1e 2y ago
In the second quarter, it posted more than $700 million in net losses, according to a filing with the National Association of Insurance Commissioners. I assume the rate of accidents/premiums/payouts is somewhat consistent. Which would imply to me they have been running huge deficits for years. How was everyone asleep at the wheel? Edit: I mean both the company and auditors. Internally, everyone had to see the approaching disaster. Premium hikes were obvious necessary. Or were there bonus structures for selling more packages, even if they cost the company money?
- lesuorac 2y ago
  When aren't they asleep at the wheel [1]? It's just generally they're only driving a bicycle instead of an airplane. Of course, it takes two to tango. The company itself needs to be acting irresponsibly and the regulators need to as well. [1]: https://en.wikipedia.org/wiki/2007%E2%80%932008_financial_crisis https://en.wikipedia.org/wiki/2007%E2%80%932008_financial_cr...
- JumpCrisscross 2y ago
  Also, “while ATIC is required by the state’s DFS to submit to an examination every five years, there are no publicly available exam reports for the company. A 1986 DFS evaluation obtained by Bloomberg described ATIC as insolvent by $6 million.”
deleted 2y ago
[deleted]
JumpCrisscross 2y ago
Too big to fail my ass. Let it fail. Temporarily increase unemployment benefit caps for drivers to cover vehicle payments. Zero-interest loans for natural persons who own only one medallion and represent they drive for it. No help for other medallion owners—they should have had the resources to diligence their insurer. Then launch independent inquiries into the regulators’ inaction and the competitiveness of this insurance market and encourage prosecutors to go over AITC’s books and filings with the DFS for discrepancies.
nothercastle 2y ago
“ In that case, “every taxi driver or limo driver is going to have a significant increase in their insurance premium” as rates adjust to reflect real risk” Absolutely devastating… rates adjusting to real risk. Nah let’s have government intervention
r00fus 2y ago
Seems to dovetail with this trend of skyrocketing insurance costs nationwide [1]. So unlike other insurers this one didn't increase their rates accordingly or were just massively mismanaged. Regardless, the options for cabbies/uber drivers is going to suck. https://apnews.com/article/auto-insurance-inflation-deductible-premium-6a36627bfcd26f58d7541047a3fbabfd#:~:text=Higher%20overall%20auto%20prices%20and,broader%20inflation%2C%20if%20at%20all https://apnews.com/article/auto-insurance-inflation-deductib....
locopati 2y ago
this is NYC... look for the corruption and embezelling

18 points by taylorbuley 2y ago

In the second quarter, it posted more than $700 million in net losses, according to a filing with the National Association of Insurance Commissioners. I assume the rate of accidents/premiums/payouts is somewhat consistent. Which would imply to me they have been running huge deficits for years. How was everyone asleep at the wheel? Edit: I mean both the company and auditors. Internally, everyone had to see the approaching disaster. Premium hikes were obvious necessary. Or were there bonus structures for selling more packages, even if they cost the company money?

lesuorac 2y ago
When aren't they asleep at the wheel [1]? It's just generally they're only driving a bicycle instead of an airplane. Of course, it takes two to tango. The company itself needs to be acting irresponsibly and the regulators need to as well. [1]: https://en.wikipedia.org/wiki/2007%E2%80%932008_financial_crisis https://en.wikipedia.org/wiki/2007%E2%80%932008_financial_cr...
JumpCrisscross 2y ago
Also, “while ATIC is required by the state’s DFS to submit to an examination every five years, there are no publicly available exam reports for the company. A 1986 DFS evaluation obtained by Bloomberg described ATIC as insolvent by $6 million.”

deleted 2y ago

[deleted]

JumpCrisscross 2y ago

Too big to fail my ass. Let it fail. Temporarily increase unemployment benefit caps for drivers to cover vehicle payments. Zero-interest loans for natural persons who own only one medallion and represent they drive for it. No help for other medallion owners—they should have had the resources to diligence their insurer. Then launch independent inquiries into the regulators’ inaction and the competitiveness of this insurance market and encourage prosecutors to go over AITC’s books and filings with the DFS for discrepancies.

nothercastle 2y ago

“ In that case, “every taxi driver or limo driver is going to have a significant increase in their insurance premium” as rates adjust to reflect real risk” Absolutely devastating… rates adjusting to real risk. Nah let’s have government intervention

r00fus 2y ago

Seems to dovetail with this trend of skyrocketing insurance costs nationwide [1]. So unlike other insurers this one didn't increase their rates accordingly or were just massively mismanaged. Regardless, the options for cabbies/uber drivers is going to suck. https://apnews.com/article/auto-insurance-inflation-deductible-premium-6a36627bfcd26f58d7541047a3fbabfd#:~:text=Higher%20overall%20auto%20prices%20and,broader%20inflation%2C%20if%20at%20all https://apnews.com/article/auto-insurance-inflation-deductib....

locopati 2y ago

this is NYC... look for the corruption and embezelling