Historic Q2 loss implies TLC insurance giant American Transit is insolvent. Will regulators and/or TLC step in? What it could mean for NYC drivers, fleets, brokers, Lyft & Uber?
Those numbers are very scary, specially because of the amount of fleet owners and drivers that rely on this “Insurance Company” it sounds just like this: “Dear current and new customers, while you continue to make your payments on time, be aware that if something was to happen to any of your vehicles we would not be able to pay neither for your damages or any other third parties involved.” Moreover, like having a policy but not really having one.
Yes, having an insurance company that can't properly manage / litigate claims or payout claims is not a good situation. Basis for Uber's lawsuit essentially. Think NYS DFS would still cover liability limits if an insurer couldn't pay out claims, but still an uncomfortable situation all around.
TLC's reckless issuance of for-hire licenses to inexperienced new drivers is directly contributing to a surge in accidents. Requiring at least five years of driving experience for all new for-hire drivers is a crucial safety measure.
That's an interesting take! Even one step further many drivers were incentivized to purchase EVs, which are harder and often more expensive to insure (at the moment). It is on the insurance companies to make sure they're appropriately underwriting / pricing risk + the DFS to track how those companies are doing that to prevent a situation like we currently have now with ATIC. That being said, to your point, in a very low growth (by absolute policies) market, when the TLC releases more FHV licenses (TLC plates), insurance companies and brokers are eager to win new business, regardless of how the loss runs are likely to look
Those numbers are very scary, specially because of the amount of fleet owners and drivers that rely on this “Insurance Company” it sounds just like this: “Dear current and new customers, while you continue to make your payments on time, be aware that if something was to happen to any of your vehicles we would not be able to pay neither for your damages or any other third parties involved.” Moreover, like having a policy but not really having one.
Yes, having an insurance company that can't properly manage / litigate claims or payout claims is not a good situation. Basis for Uber's lawsuit essentially. Think NYS DFS would still cover liability limits if an insurer couldn't pay out claims, but still an uncomfortable situation all around.
TLC's reckless issuance of for-hire licenses to inexperienced new drivers is directly contributing to a surge in accidents. Requiring at least five years of driving experience for all new for-hire drivers is a crucial safety measure.
That's an interesting take! Even one step further many drivers were incentivized to purchase EVs, which are harder and often more expensive to insure (at the moment). It is on the insurance companies to make sure they're appropriately underwriting / pricing risk + the DFS to track how those companies are doing that to prevent a situation like we currently have now with ATIC. That being said, to your point, in a very low growth (by absolute policies) market, when the TLC releases more FHV licenses (TLC plates), insurance companies and brokers are eager to win new business, regardless of how the loss runs are likely to look