New York State Insurance Commissioner Howard Mills addressed a wide range of issues during a speech on September 29 at PIA of New York’s third annual Hudson Valley Regional Awareness Program.

“This whole issue of contingent commissions has erupted and really thrown the industry in turmoil,” said Mills. “And let me say first off, that I do believe that a very good, very important, very critical industry was painted with a very, very broad brush. That's unfortunate and it was not fair.”

Mills noted that bid rigging and contingent commissions are not synonymous and that investigations into the illegal activities of some companies have shown that such practices will not be tolerated in the industry. He voiced support of contingent commissions as a legitimate business model stating that the New York State Insurance Department is not going to “promulgate a regulation that says contingent commissions are illegal.” Instead, the department will address the issues of disclosure and transparency. Preferring a “common-sense approach” to disclosure requirements, Mills said the department’s objective shouldn’t be to provide insurance consumers with every single insurance quote available to them.

Also, Mills called the pending expiration of TRIA, “the most important issue facing our national economy.” He said he has been meeting with members of Congress and other lawmakers to stress that the extension of TRIA is not just a New York issue and that another terrorist attack could make the losses of more than $100 billion from Hurricane Katrina pale in comparison for the insurance industry and the national economy. To the advocates who say that TRIA shouldn't be a government issue, Mills responded, “I am a small-government-type person. That is the best government. But there are some things that only government can do. That is what we have governments for, and this is one of the best examples of something only government can do.”

Mills Recaps Recent Industry Issues (PIANY 10/3/05)

October 4, 2005