Trial Lawyers, Consumer Advocates Respond to New Report Showing Insurers Deny Half of All Auto Insurance Claims

STUDY: HOCHUL PROPOSALS 'REINFORCE HARDSHIPS FOR CONSUMERS'

NEW YORK, April 16, 2026 /PRNewswire/ -- As Governor Hochul pushes insurance company-backed proposals to limit victims' rights, a new report by an independent research organization found that New York auto insurance companies close nearly half of all liability claims without any payout even as the companies have racked up record profits through investments of premium payments. 

According to Weiss Ratings, nearly 1.3 million auto liability claims, or 48.3%, were closed in "flat-out denials". The numbers represent a 44% increase in denials since 2005.

"Insurance companies sometimes close claims without payment for justifiable reasons, but there are key aspects to the data that raise serious concerns: All told, large companies operating in New York State closed nearly half of liability claims in 2025 without paying a dime to policyholders, compared to just one-third in 2005," said Martin Weiss, founder of Weiss Ratings. "The biggest player in the sector closed 55.5% of claims without payment. And overall, insurers make so much income from investing your premium dollars that it can create incentives for some to deny and delay payments as much as they can get away with." 

Weiss noted that New York is one of only two states, along with North Dakota, that has not required companies to report to state regulatory authorities on "key market conduct data" which would allow regulators, lawmakers and the public to assess company claims of financial distress leading to New York's highest-in-the-nation auto insurance premiums. The report noted that New York finally this year joined the National Association of Insurance Commissioners' Market Conduct Annual Statement (MCAS) system which will allow greater transparency going forward, but there is no historical data to assess the company's current campaign, backed by millions in lobbying and advertising dollars, to support Hochul's proposals.

By surveying available data, the Weiss report found that "[s]ince 2015, large insurers operating in New York have generated $42.3 billion in investment and other income, exceeding their $27.9 billion in net underwriting gains. This reflects the industry's ability to earn substantial income from policyholders' premium dollars, even in years when underwriting profitability is under pressure. Worse, it creates strong incentives for insurers to maximize their "float" by delaying, cutting, and denying claims.

Citizen Action of New York commissioned Weiss Ratings, which is an independent research company, to review the New York auto insurance market.

Consumer advocates said the Weiss report underscored what they already knew —that auto insurance companies have stacked the deck against premium payers even as they fight against calls for greater transparency.

"This report confirms what too many New Yorkers already feel every time they pay their premiums or file a claim: the auto insurance system is stacked against them," said Rebecca Garrard, Co-Executive Director of Citizen Action of New York. "While families struggle to afford coverage, insurance companies are raking in billions and operating with alarming levels of secrecy. The lack of transparency in New York's insurance market allows insurers to deny claims and delay payments with little accountability, leaving drivers unprotected when they need help the most. It's clear that without stronger oversight and real reform, this system will continue to prioritize corporate profits over people."

"Gov. Hochul had every opportunity to rein in insurers' astronomical premiums and predatory delay-and-deny tactics," said NYSTLA President Andrew Finkelstein. "She has the authority to regulate them but instead rubber-stamped increases well beyond what's permitted under New York's flex-rating system. Instead of protecting New Yorkers, she's handed a free ride to insurers to raise costs without real oversight and to pocket excess profits. Now the governor wants to strip your rights so they can pay out even less while you keep paying more. The experts say this is a mistake and legislators are wise to heed this advice."

"The government requires us to buy insurance, and we hope never to use it, but we need to trust that the companies will live up to their end of the bargain when there's a claim to be paid," said Douglas Heller, Director of Insurance at Consumer Federation of America. "This new data show that insurance companies actually deny crash survivors' claims almost half the time. But rather than being outraged that insurers are profiting by investing our premiums dollars and then withholding claim payments, Governor Hochul's plan blames the victim and aims to strip injured consumers' of their rights to hold insurance companies accountable when they delay, lowball, and deny New Yorker's insurance claims. The Governor should change course and focus on reining in the insurance companies instead of reducing the rights of consumers."

"Drivers in New York face a deteriorating environment of increasing insurance premiums while struggling to get claims paid when they have a loss," said Doug Quinn, Executive Director of The American Policyholder Association. "At the same time, insurance companies are extracting significant profits from working class families in the state. Now there are efforts to reduce policyholders' ability to seek justice in civil courts when they have been treated unfairly. Big insurance knows how to strategically spread around lobbying money to tilt the playing field in their favor. Many believe this strategy was used in Florida to help create one of the most dysfunctional insurance markets in the country. New Yorkers should be wary of political initiatives to further protect the insurance industry's profit margins at the expense of ordinary New Yorkers."

"This report raises serious issues related to the regulation of auto insurance in NY," said Blair Horner, NYPIRG Senior Policy Advisor. "New Yorkers have been paying way too much for way too long. It's high time Governor Hochul and state lawmakers got serious about reforming the system. This report offers a blueprint for action. NYPIRG urges the governor and lawmakers to kick the discussion over auto insurance out of the budget and 'get under the hood' to make New York's insurance oversight transparent and one that saves drivers money. And when it comes to 'fraud,' the appropriate response to an organized crime problem should not be reducing consumer rights." 

Weiss Ratings urged New York lawmakers to embrace three reforms that are far more likely to serve Hochul's purported goal of more affordable auto insurances. The report calls for:

• Making MCAS participation meaningful by providing historical context, ensuring timely public access, and integrating the data into regulatory analysis;
• Expanding transparency by disclosing company-specific performance data to empower consumers; and
• Pursuing balanced reforms that address fraud while also strengthening consumer protections and accountability.

Absent these changes, New York risks continuing on a path where premiums rise while a large share of claims go unpaid, undermining consumer confidence and the long-term stability of the insurance marketplace," the report concludes. 

Weiss Ratings

Weiss is the only independent research organization in America that has been tracking and releasing data to the public regarding the worsening trend of claims denials by insurers. Weiss rates 53,000 institutions and investments, including safety ratings on insurers, banks, and credit unions, as well as investment ratings on stocks, ETFs, mutual funds and digital assets. Since its founding in 1971, Weiss Ratings has never accepted any form of payment from rated entities for its ratings. All Weiss insurance company ratings are available at https://weissratings.com/en/insurance. The U.S. Government Accountability Office (GAO) reported that the Weiss ratings of U.S. life and health insurers outperformed those of A.M. Best by 3-to-1 in warning of future financial difficulties, while also greatly outperforming those of Moody's and Standard & Poor's. The New York Times reported that Weiss "was the first to warn of the dangers and say so unambiguously." Barron's called Weiss Ratings "the leader in identifying vulnerable companies."

CITIZEN ACTION

Citizen Action of New York is a grassroots, member-led organization building power to create a world where our communities thrive. We take on the root causes of injustice and inequality—from systemic racism to corporate greed—and organize across New York State to win bold, transformative change. Our members are everyday people fighting for a society that works for all of us, not just the wealthy few.

NEW YORK STATE TRIAL LAWYERS ASSOCIATION

The New York State Trial Lawyers Association is a statewide civil justice organization dedicated to protecting access to justice for New Yorkers. Its members have taken on Big Tobacco, opioid manufacturers and Big Pharma, dangerous products, and corporations responsible for toxic exposure—and continue to oppose Big Insurance's delay, deny, defend model. 

Press Contact: Sabrina Rezzy, New York State Trial Lawyers Association, 610.750.4351, [email protected]

SOURCE New York State Trial Lawyers Association