How Green Is N.Y.’s Hudson Valley’ ‘Very Green,’ Say Insurers

From West Point to Woodstock and Roosevelt to Rockefeller, New York’s Hudson River Valley is rich in history, events, and natural beauty. This 150-mile territory from Nyack to Albany is also an increasingly vibrant economic region that has insurance underwriters vying for insurance agents’ attention.

The Hudson Valley Economic Development Corporation, a public-private cooperative effort, has unleashed an aggressive $7.5 million marketing strategy to attract businesses to the Hudson River Valley while preserving the region’s natural beauty. Representing an eight-county region, the new organization aims to help create 10,000 new jobs by 2007.

The I-97 corridor, as it is also known, has benefited from decisions by Cadbury Schweppes to consolidate its Snapple and Motts headquarters in Rye Brook and Nokia to establish a corporate office in Harrison. Argent Mortgage Company, Endurance Reinsurance Corporation of America, WMC Mortgage, Wusthof-Trident of America, Olympus Industrial America, Progenics Pharmaceuticals, Aureon Biosciences and Save-A-Lot are among other companies that have announced investments in the region.

Since 1996, the Hudson Valley has seen a 22 percent growth in industry with a population explosion to match.

It’s no wonder that insurance executives look at the region and like what they see. At the recent Professional Insurance Agents of New York Hudson Valley RAP (Regional Awareness Program) in Suffern, insurance executives for carriers of all sizes had nothing but good things to say about this area, unanimously proclaiming it a place where they want to grow their market share.

The insurance leaders cited the Hudson Valley’s population growth, revitalization of its resort industry, conversion of seasonal cottages to homes, a growing hi-tech economy, as well as the multi-county area’s distance from the coastal and terrorism issues that affect Long Island and Manhattan and the economic troubles in the western part of the state.

A discussion panel featuring Patrick Kinney, regional vice president, northeast region of St. Paul Travelers Select Accounts; Zane Morganstein, president, Associated Mutual Insurance Cooperative; Janet Weinstein, regional vice president, The Hartford; and Richard Zick, president and chief executive officer, Utica First Insurance Co., was moderated by Kevin Ryan, director of PIANY and president of The Valley Group Inc.

The executives were brimming with praise and optimism about the Hudson Valley.

“The Hudson Valley is one of our most profitable territories and is desirable for a lot of reasons: the economy is reasonably good; the growth in business services and technology has a lot of strong profit potential in the commercial lines area; and the demographics are excellent for the personal lines business,” said The Hartford’s Weinstein. “Also, we aren’t subject to some of the issues we face in Upstate New York and Long Island and there aren’t the same exposures regarding terrorism we have to face in New York City.”

Utica’s Richard Zick stressed that the Hudson Valley should continue to be a “very positive” market given its stable economy, reduced risk for terror or catastrophe and the improvement in the auto insurance market statewide.

“All of our competitors like this area,” stated St. Paul Travelers’ Kinney. He said the Hudson Valley’s “future is bright and we want to be a part of it.”

Associated Mutual’s Morganstein, whose company writes in New York only, said he has seen the region change over the last 20 years, when it was all but abandoned. But the interstate highways (I-87 and I-86) have spurred new development, including large shopping malls. “Now we see opportunity once again,” he noted, adding that his company targets the smaller local stores and businesses that spring up after the giant developers complete their malls.

“Hudson Valley looks very similar to Long Island 25 years ago,” he said. “It’s happening even faster than we thought. We want to be a player in our areas of expertise.”

The Hartford’s Weinstein expanded on her comments. “The Hudson Valley profit potential is great. In New York, there are always speed bumps along the way but our objectives are enormous and we look to the Hudson Valley as a major source for new business,” she added.

Despite all the positive talk, the executives also acknowledged some challenges, most having to do with the state or industry as a whole.

Morganstein offered that it is a challenge to find good employees in this growth environment, as insurance firms have to compete with the other growing employers for the same talent. Panelists confirmed, however, that difficulty in finding quality personnel for the insurance industry is not confined to the Hudson Valley.

The lack of new blood in the industry is a “massive” issue, in Kinney’s view. “This also affects agents. We’ve done a poor job attracting young people to this industry,” he remarked, citing statistics that the average age in the industry is between 43-45.

Weinstein and the other executives suggested that the New York regulatory and legislative atmosphere could be a headache at times. Of major concern to the executives are the state’s refusal to permit terror or mold exclusions and the continuing problems with contractor’s liability and workers’ compensation.

Zick stressed the need for renewal of the federal Terror Risk Insurance Act (TRIA) that provides a backstop for insurers in the area of terrorism exposures. He warned that if TRIA is not renewed in a timely fashion, it could cause serious problems downstate especially given the state’s lack of terror exclusions. The terror issues should be less of an issue in the Hudson Valley, he suggested.

The executives were united in their call for renewal of TRIA.

“As an industry we are far better off today,” agreed Morganstein. “We can better withstand the impact of another attack. And TRIA is just the underpinning for what allows us to continue to provide the services we provide.”

At an awards luncheon, Donald Liebert, past president of The Liebert Agency, received the Hudson Valley RAP Distinguished Insurance Service award for his long-standing commitment and service to PIANY and the insurance industry. Liebert has been a member of PIANY for more than 30 years and has served on numerous PIANY committees, including Government Affairs and Education & Conference committees.

Additionally, Zick accepted the Hudson Valley RAP’s Company of the Year award on behalf of Utica First Insurance Co. “The philosophy at our company is that our agents are our livelihood,” said Zick.

Topics Carriers New York Market