Photo: Assemblyman Goldfeder was one of the featured speakers at last week’s New York Insurance Association, Inc. conference. Courtesy of Assemblyman Goldfeder’s Office
Assemblyman Phil Goldfeder (D-Howard Beach) last week at an insurance industry summit detailed and defended his proposal to create a new flood insurance association.
Goldfeder, assigned earlier this year to the Insurance Committee, brought concerns over industry practices in the wake of Superstorm Sandy, including rising premiums and alleged fraud designed to limit assistance to families, to the New York Insurance Association, Inc. Annual Conference in Saratoga Springs.
“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,” Goldfeder said. “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.”
Goldfeder joined fellow legislators last Friday, the closing day of the conference, for a panel discussion of issues affecting the industry. During the open question and answer session, he responded to an inquiry about the Biggert-Waters Flood Insurance Reform Act and the consequences of rising flood insurance premiums for middle class families in 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 act that also extended the National Flood Insurance Program for five years, while requiring significant reform. “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.”
In March, Goldfeder cited his NYFIA plan as a joint underwriting alliance aimed at providing homeowners with an option to rising federally-backed flood insurance premiums by offering “economical, fair and non-discriminatory policies; and to protect families from the unfair flood damage claims practices experienced” after Sandy.
Goldfeder urged those present to partner with his efforts to establish NYFIA as a viable alternative to the current NFIP system, adding that he looked forward to hearing suggestions on how to improve the legislation. In general, Goldfeder reported, the tone was largely respectful on both sides, though some industry members appeared to bristle at his focus on the problems 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,” he said. “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. 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.”
michael@theforumnewsgroup.com
