Assemblyman Phil Goldfeder led a bipartisan group of state Senators and Assembly Members in discussing his proposals to fix flood insurance practices at the New York Insurance Association (NYIA) 2015 Annual Conference. The Assemblyman brought his concerns over insurance industry practices in the wake of Superstorm Sandy, including rising flood insurance premiums and alleged fraudulent practices designed to limit assistance to families.

“It was an honor to be invited by the New York Insurance Association to discuss the flood insurance issues affecting Sandy-devastated communities and the ways we can ensure families are not priced out of the neighborhoods they know and love. Though we may not always see eye-to-eye, it’s important to have an open dialogue with insurance representatives to find ways to improve industry practices and create the best possible system that puts the needs of our families first,” said Assemblyman Phil Goldfeder.

Assemblyman Goldfeder joined fellow legislators on the closing day of the New York Insurance Association 2015 Annual Conference for a panel discussion of issues affecting the insurance industry. Goldfeder was invited to discuss his efforts as the newest member of the Assembly Committee on Insurance and provide details on his proposal to create the New York Flood Insurance Association to help Sandy-devastated families struggling with rising flood insurance premiums. Also on the panel was Senator James Seward (R – Oneonta), Chair of the Senate Insurance Committee, who sponsored the Senate companion to Goldfeder’s Flood Insurance Association Bill. Seward said during the panel discussion that he looked forward to working with Goldfeder and fellow legislators to make the necessary changes to improve existing flood insurance practices.

According to its website, the New York Insurance Association is the oldest state property/casualty insurance trade association in the country, tracing its roots back to 1882. In addition to regular member committee meetings, NYIA holds an annual conference bringing together industry representatives, state agency leaders and elected officials to discuss the main issues affecting the industry. This year’s conference was held from May 27-29th in the upstate town of Saratoga Springs, New York. The panel discussion attended by Goldfeder closed out the three-day event, which saw various lectures and group discussions.

During the open question and answer session, Goldfeder and his flood insurance legislation were the clear favorite topic of discussion. Goldfeder took numerous questions during the hour-plus talk, ranging from the problems with the federal government’s National Flood Insurance Program and the ways insurance companies can collaborate with legislators on best practices and ongoing efforts to combat fraud in the industry. During one extended exchange, Goldfeder responded to questions about the Biggert-Waters Act and the consequences of rising flood insurance premiums for middle class families in the Superstorm Sandy-affected communities.

“That would price us out of the community,” said Goldfeder, referring to the abrupt rise in flood insurance premiums proposed under the 2012 federal act. “The East Coast is one of the most densely-populated areas of the country. To think that people are just going to move inland because they can’t afford living there anymore is just not realistic.”

Throughout the discussion, Goldfeder emphasized the responsibilities legislators and industry leaders both faced in responding to the problems with the current flood insurance system. Goldfeder urged those present to partner with his efforts to create an alternative to the current NFIP system, adding that he looked forward to hearing suggestions on how to improve the legislation. In general, the tone was largely respectful on both sides, though some industry members appeared to bristle at the Assemblyman’s focus on the problem’s facing the industry. When one insurance representative pointed out the various charitable activities championed by the financial services sector, Goldfeder acknowledged that the potential for wrongdoing exists in any large entity.

“There are bad players in every industry. Believe it or not, there are even bad elected officials. We all saw the same 60 Minutes report of fraudulent activities by engineers and adjusters. Thousands of Sandy families were cheated out of money they needed and deserved because of people who were more worried about their bottom line,” said Assemblyman Goldfeder. “We have a responsibility to the people we represent, both as insurance companies and elected officials, to ensure there is a system that is affordable and accountable.”

For his part, Goldfeder ended his participation with a simple reminder to insurance representatives to consider the difficult situations families are in when they are seeking assistance from insurance companies.

“Let’s remember: your employees are seeing our families in their worst possible moments and that’s when they need the most compassion,” concluded Goldfeder.

(YWN Desk – NYC)