NEW YORK — The insurance industry can be more than just a way to deal with risk in society, and can be used as "a catalyst for positive change in society," New York's top regulator said here Friday.

Benjamin Lawsky, superintendent of New York's Department of Financial Services, said during an Insurance Federation of New York luncheon that the insurance industry "performed beautifully" during Superstorm Sandy last year, but added that insurers can now take a leadership role as the state enters the rebuilding process.

He said, "We really need people along the coast, as they rebuild, to take mitigation measures and raise their homes up so we're not dealing with the same problem year-in and year-out when we have these 100-year floods that seem to be happening every year or two."

Lawsky stated that the insurance industry should work with regulators to incentivize the public to take such mitigation efforts. "And if we do that and work on it together," he said, "that will lower the damages suffered later."

Benefits, said Lawsky, would include lower loss costs for insurers during the next storm and lower premiums for people who live along along coast.

Lawsky also said the industry can take the lead in encouraging mitigation efforts in the auto-insurance space through greater use of telematics.

Telematics, he said, could lead to fewer accidents, lower premiums and could save lives and make for safer streets.

"Those are the ideas we're going to focus on in the year ahead and really try to incentivize," Lawsky said.

Special Reports /

Lawsky: Industry Can Do More Than Transfer Risk; It Can Create Positive Change

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