New York regulators are proposing that insurance companies set aside extra money to pay for damage in the event of a significant hurricane, seeking to ease, at least in the state, the soaring premiums faced by millions of Americans along the Atlantic and Gulf Coasts. But insurers have expressed reservations.
Under the New York plan, insurers would for the first time be required to use money that now goes directly to profits to create contingency funds to pay for hurricane losses. Then, when a big storm hits, money would already be designated to pay for much of the damage. The financial shock would be eliminated or reduced, the regulators say, and there would be no justification for raising premiums sharply.
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