NY Taxi Insurer American Transit Lost $700 Million In Q2 And Is Delaying Payouts

Carlos Quiles was injured in a car accident involving his Uber driver in May 2022 and has been experiencing difficulties in receiving insurance payments from American Transit Insurance Co. (ATIC). ATIC is the largest insurer of commercial taxis and rideshare vehicles in New York City, holding over 60% market share. Many others, including Uber Technologies Inc., have also reported frustration with ATIC due to delayed payments for accidents involving bodily injuries. Uber is currently suing ATIC in federal court for failing to honor coverage for New York City rideshare drivers involved in accidents. ATIC reported over $700 million in losses in the second quarter, prompting state regulatory intervention. The company's financial statements have been reviewed by a third-party actuary for the National Association of Insurance Commissioners, who has repeatedly stated that ATIC's reserves are inadequate, a view disputed by ATIC's executives. Without new capital, ATIC risks being unable to pay claims or insure drivers, threatening the city's transportation network. Drivers insured by ATIC currently pay $4,000 to $6,000 annually, and if ATIC raises premiums, costs could increase by 30%, further straining the industry. New York's Division of Financial Services is working with ATIC and other stakeholders to address the company's financial issues and protect drivers, passengers, and the stability of the New York livery insurance market.