Yesterday, we had the opportunity to sit down with Attorney Steven Shanker, a partner at Romano Law and one of the most experienced legal voices in New York City’s for-hire transportation (TLC) industry.
For more than two decades, Steven has represented black car bases, livery bases, the Independent Livery Driver Benefit Fund, and numerous other stakeholders across the TLC-regulated marketplace. His work spans business transactions, complex litigation, and regulatory compliance, giving him a unique perspective on how insurance, law, and public policy intersect in the NYC taxi and for-hire vehicle (FHV) industry.
In this conversation with AutoMarketplace’s Dawood Mian, Steven breaks down the ongoing NYC taxi and FHV insurance crisis—focusing in particular on the insolvency of American Transit Insurance Company (ATIC), which still insures more than 60% of all NYC FHVs, including yellow cabs and vehicles that pick up Uber and Lyft trips.
We explore how ATIC’s decades-long solvency problems persisted under the radar, why new insurers have struggled to enter this uniquely risky market, and what regulators at the New York State Department of Financial Services (DFS) and the New York City Taxi & Limousine Commission (TLC) could do differently.
Steven highlights two of the biggest obstacles: (1) the distinct risk profile of the TLC market, and (2) the chronic underpricing of policies—enabled by American Transit’s unsustainable operations—which makes actuarially sound entry nearly impossible for new carriers.
Perhaps controversially, Steven argues that supply-and-demand realities may require a contraction of 30,000–40,000+ TLC-licensed vehicles—a painful adjustment that could mean significant job loss for drivers but may ultimately be necessary to stabilize the market and attract sustainable insurance capacity.
Looking ahead, the discussion considers potential solutions—ranging from usage-based insurance models and allowing E&S (Excess & Surplus) lines to legislative reforms. The conversation also explores the disruptive role autonomous vehicles (AVs) may play in reshaping both insurance and TLC regulation in the years to come.
We hope you enjoy the conversation, and we thank Steven for his time and insights!
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TABLE OF CONTENTS
00:00 – Introduction Welcome to the AutoMarketplace Podcast; guest Attorney Steven Shanker of Romano Law. 00:37 – Steven Shanker’s Background 20+ years in NYC for-hire transportation law, Independent Livery Driver Benefit Fund, Partner at Romano Law. 02:15 – NYC Black Car vs. Livery Industry Explained Historical differences, how Uber blurred the lines, and why a livery industry sales tax exemption exist. 09:00 – TLC Insurance 101 Basics of TLC vs. personal auto vs. rideshare insurance in NYC and elsewhere. 10:55 – Why NYC is Different Unique TLC carve-out in New York law, comparison to Albany, Buffalo, other New York State cites / towns rideshare rules and U.S. cities. 14:30 – Why NYC is Uber & Lyft’s Most Profitable Market Drivers, not Uber/Lyft, pay primary insurance costs in NYC. 15:55 – The American Transit Crisis Background on ATIC insolvency, $600M+ hole, and DFS’s decades of inaction. 20:30 – Why No Other Insurers Entered the NYC Taxi & FHV (TLC) Market Underpricing, risk complexity, and market dynamics that kept other carriers out. 24:45 – The Legal Requirement: Rehabilitate or Liquidate What DFS should have done, Guaranty Fund shortfalls, and “too big to fail” dynamics. 31:05 – Possible Solutions: Opening the Market New carriers, usage-based insurance, E&S (Excess & Surplus) carriers, free trade zone flexibility. 36:30 – Why NYS Dept. of Financial Services (DFS) Has Stalled on NYC TLC Usage-Based Insurance Rate filing delays, regulatory gridlock, and lost opportunities for innovation. 40:20 -- Why did NYC TLC ban E&S (Excess & Surplus) carriers Inshur lawsuit, Is TLC acting as an insurance regulator? 45:00 – Legislative Paths Forward How Albany could allow E&S (Excess & Surplus) carriers or free trade zone treatment for TLC insurance. Why did NYS allow Uber / Lyft (TNC) E&S lines outside of NYC? 50:55 – The Affordability Question What happens if actuarially correct premiums double? 53:55 – Job Losses vs. Market Correction vs. Autonomous Vehicles (AVs) Harsh realities if half the industry can’t afford insurance, and the long-term outlook. Supply/demand effects and AV future–TLC plate values. 1:02:30 – AVs & Insurance Waymo testing in NYC, $5M liability policies, competition for existing carriers, AV liability paradigm (product vs. driver). 1:07:30 – Timeline for AV Adoption in NYC Why NYC will lag behind Arizona or San Francisco; 7–10 year horizon. 1:09:55 – Closing Thoughts & Contact Info Steven Shanker shares contact details; reflections on transparency, regulation, and industry knowledge.
HOW TO CONTACT STEVEN SHANKER?
steven@romanolaw.com | (917) 725 7194
AutoMarketplace reports on New York City’s for-hire transportation (TLC) industry and the wider automotive mobility landscape.
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