Earlier today, we had the opportunity to speak with former NYC Taxi & Limousine Commission (TLC) Chair Matthew (Matt) W. Daus.
After leading the TLC from 2001 to 2010, Matt has remained deeply engaged in both the NYC and national taxi and for-hire transportation industries. From founding the Transportation Practice Group at Windels Marx, to serving as President of the International Association of Transportation Regulators (IATR), to teaching at the City University of New York (CUNY), Daus is a true expert whose unique experience spans both the public and private sectors.
Today’s conversation between Daus and AutoMarketplace’s Dawood Mian focuses on the NYC taxi and for-hire vehicle insurance crisis. Daus’ recently published University Transportation Research Center (UTRC) report, The NYC Taxi and For-Hire Vehicle (FHV) Insurance Crisis: Root Causes and Solutions, not only outlines the problems but also proposes both short- and long-term strategies to help stabilize the TLC insurance marketplace.
We also discuss broader industry issues—such as the TLC Plate Cap—and conclude with an intriguing exploration of how insurance might evolve in a world of autonomous vehicles (AVs).
We hope you enjoy the conversation!
For an interactive table of contents and a transcript summary, please see below.
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Also available on YouTube ⬇️
TABLE OF CONTENTS
00:00 Intro 00:36 Former NYC TLC Chair Matthew (Matt) W. Daus’ professional background 05:25 Why should people care about the NYC TLC (taxi, Uber, Lyft) insurance crisis? 08:08 How big is the crisis? Supply and demand issues? 10:10 Insurance crisis background (1-800-LAWYERS, inflation, pandemic, regulations) 12:39 Analogy to Florida (hurricanes) and California (wildfires) home insurance crises 15:46 Why it’s important to reduce NYC no-fault (PIP) insurance requirements. What is PIP? 18:00 Average no-fault (PIP) claim in NYC? Example of PIP claim 19:10 Why does no-fault (PIP) exist? Why is NY one of the only states that has no-fault requirements? 22:04 NYC taxi and FHV no-fault requirements 4x ($200k) higher than NY State ($50k)? Why? 24:44 How can NYC TLC create unique insurance requirements, isn’t NYS DFS the insurance regulator? 27:44 Who’s hurt by reducing no-fault (PIP) requirements? 30:35 Tort reform, frivolous litigation and no-fault (PIP) insurance technicalities 32:39 Trial lawyers, medical bills and abuse, even though TLC insurance risk getting better 37:50 Importance of allowing excess (surplus) lines in NYC TLC insurance market 44:11 TLC rental companies are being demonized and it’s preventing insurance innovation 45:15 Does there need to be a TLC Plate (For-Hire Vehicle (FHV) License) Cap? 50:56 If there is no TLC Plate Cap, wouldn’t the value of the taxi medallion plummet? 53:00 Manage growth of TLC Plates to allow businesses to grow 56:16 Intention wasn’t to create a mini-medallion system that encourages dangerous speculation 56:52 How TLC rentals relate to insurance crisis 1:00:05 “TLC is not an insurance regulator” 1:01:50 Why is TLC demonizing rental companies? “Predatory” leasing (rental) narrative 1:05:52 Reducing insurance limits and changing politics 1:07:35 Summary of short-term solutions to NYC TLC insurance crisis 1:09:45 Telematics reduces frivolous claims and insurance fraud 1:11:21 If nothing is done on TLC insurance crisis, what risks are we running? Why is it important to act now? 1:19:53 Autonomous vehicle (AV) insurance, robotaxi adoption and ‘Tesla Network’ business model 1:25:23 NYC taxi medallion = NYC AV license? 1:26:30 Closing remarks and how to get in touch with Matt (mdaus@windelsmarx.com)
Quick Summary
NYC Insurance Crisis Overview: A $700+ million NYC for-hire vehicle (FHV) and taxi insurance crisis is impacting the taxi and rideshare industry, with broader national implications.
Why It Matters: Insurance costs are hidden in fares but impact consumers, drivers, and state-wide insurance markets; affordability is collapsing across the board.
Root Causes: Pandemic losses, fraud, legal abuse, and structural issues like high no-fault (PIP — personal injury protection) limits are major drivers.
Policy Solutions: Daus recommends reducing NYC's PIP requirement from $200K to $50K (state level), noting most claims don’t justify the high cap and it invites fraud.
Support for Surplus Lines Insurance & Rental Industry: He advocates for allowing surplus / excess lines carriers to be allowed (again) to underwrite TLC insurance—especially to support the rental model used by many drivers.
Systemic Reform Needed: Tort reform and recalibrated underwriting are necessary for market stability, but difficult in liberal states like New York or California without federal intervention.
TLC Plate Cap (FHV License ‘Hard Cap’): Daus questions the long-term value speculation of TLC plates under the current cap system. He suggests it's speculative and drivers may be better off in rental models, especially with no clear path to ownership or equity.
🤖 Autonomous Vehicles (AV) Insurance Outlook: Daus briefly touches on the rise of AVs and robotaxis, which regulatory bodies—including those he works with—are actively tracking. He implies AVs, including Tesla’s vision of decentralized AV ownership, could reshape the industry again, further complicating insurance underwriting models. Matt also mentions proposed legislation that might turn NYC taxi medallions into NYC AV licenses! 🤔
