Thursday Headlines: Insurance Who Insurance Why Edition

State lawmakers are seeing the light on auto insurance, even if the governor isn’t.

The chairs of the state Senate and Assembly insurance committees have both wondered if Gov. Hochul’s proposal will deliver for New Yorkers, and not just the ones working for Uber and insurance companies.

Part of the issue is the black box that is insurance. The state Department of Financial Services helps set rates for companies operating in New York, but on a granular level, companies use proprietary algorithms and metrics to set premiums.

There are ways for the state to put its thumb on the scale and force insurance companies to share profits with policyholders, and this possibility is fuel for the argument that stripping crash victims’ rights and combating fraud is a silver bullet for rising insurance costs in New York.

If state policies lower costs for insurance companies, then they should have excess profits to return to policyholders and justify policy reductions. But as corporations, their fiduciary duty is to create a return for shareholders rather than value for customers. There are exceptions, like State Farm, which operates as a mutual company owned by policyholders and pays dividends when possible.

But for other companies, the state is in a position to say they make too much money — specifically, an average rate of return on net worth of more than 21 percent over six years — and could force them to return a share of profits to policyholders. There is no evidence that this has ever happened.

It leaves the public and even lawmakers wondering who the governor’s proposal even benefits. Now, state Senate Majority Leader Andrea Stewart-Cousins is joining New Yorkers who want a thoughtful explanation of how Hochul’s plan does more than leave crash victims in the lurch. As always, you can read more about it on Streetsblog Empire State.

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More news:

• More on insurance: While Streetsblog has been pounding out incisive story after incisive story on the flaws in Gov. Hochul’s effort to lower premiums, amNY is running advertorial from Uber. Shame.
• New Jersey Gov. Mikie Sherrill is winning praise for scaling back her predecessor’s boondoggle highway and bridge expansion. (Gothamist, Streetsblog)
• Former Rep. Anthony D’Esposito is plotting his comeback in Long Island and targeting Rep. Laura Gillen’s Fourth Congressional District seat. (Newsday)
• Republican state Sen. Peter Oberacker is attacking Democratic Rep. Josh Riley over his investments in New York State Electric and Gas as the upstate Congressman criticizes the public utility. (Mid-Hudson News)
• Nassau County Executive Bruce Blakeman is making gains, but way behind Hochul in a recent poll. (Newsday)
• Rep. Dan Goldman is getting the support of influential political clubs in Manhattan. (City & State)
• Shocker: The worst drivers in New York drive like psychopaths, and state legislation could stop the terror they cause. (amNY)
• Out-of-state straphangers can sue the New Jersey Transit after a new Supreme Court ruling. (The New York Post)
• Politics are twisting a proposal to have upstate Department of Motor Vehicle fees fund upstate transit. (The Journal News)
• Inherit the wind: Gov. Hochul wants to gut the climate law as part of her affordability push. (NY Times, Hell Gate)
• It’s doubtful she ever asked for it, but Gov. Hochul has the support of the GOP if she ever wants to roll back the state’s climate law. (WAMC)
• Pour one out and reschedule your work drinks. The Albany War Room Tavern is closed. (The Times Union)
• Hochul is pressing the state Legislature on climate and immigration in this year’s budget negotiations. (State of Politics)
• Bloomberg added up the cost of all these highways we keep building.