Adirondack, Mountain Valley begin runoff in New York
Adirondack, Mountain Valley begin runoff in New York | Insurance Business America
Insurance News
Adirondack, Mountain Valley begin runoff in New York
Companies follow up on earlier announcement regarding market exit
Insurance News
By
Kenneth Araullo
Adirondack Insurance Exchange and its subsidiary, Mountain Valley Indemnity Co, have announced they are winding down operations and will cease offering coverage after the end of this year. The companies cited deteriorating financials as the primary reason for their decision.
The companies stated on their websites that they are working with the New York Department of Financial Services (DFS) to ensure an orderly wind-down, allowing customers time to secure alternative coverage.
As per a report from AM Best, both entities assured that customers whose policies are canceled early will receive prorated refunds and promised monthly communications to assist with the transition.
In July, Adirondack Insurance Exchange indicated its intent to exit the New York market.
The state’s personal lines insurance market has faced significant challenges over the past 18 months, leading to the departure of two other personal lines carriers in the past year, according to Lisa Lounsbury, president and chief operating officer of the New York chapter of the Independent Insurance Agents & Brokers of America Inc.
Adirondack Insurance Exchange is managed by Adirondack AIF LLC, an attorney-in-fact, which is an indirectly wholly owned subsidiary of National General Holdings Corp., according to the company’s website.
Adirondack primarily offered homeowners and automobile insurance but also provided package insurance, identity theft protection, watercraft coverage, and umbrella policies. The company began offering personal lines coverage in New York in 2006.
In 2021, Allstate completed its $4 billion acquisition of National General Holdings Corp. Adirondack Insurance Exchange does not have a rating from AM Best.
In 2023, the five largest writers of homeowners insurance in New York, based on direct premiums written, were Allstate Insurance Group with a 15.44% market share, State Farm Group with 13.35%, Chubb INA Group with 11.92%, Travelers Group with 7.08%, and Liberty Mutual Insurance Cos. with 6.93%, according to BestLink.
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