Negative Developments

Technology is a wonderful thing. It makes our lives easier and our businesses more efficient; it continuously provides us with the ability to do things we never would have been able to do before; and it solves problems. It builds businesses and provides jobs. But, we have to keep up with it.

Often, it seems that as soon as we master a particular tool, it becomes an antique and we need to move on. This is a familiar circumstance when it comes to our office tools, for example—we are constantly updating our computers, software and our agency management systems. While doing so can be inconvenient, we keep up via constant investment of money and education because these investments bring us to a new level of efficiency, convenience and service for our clients. Imagine if we settled with the great invention of mimeograph machines, party-line telephone service, or fax, and stopped there. While they were significant leaps forward when introduced, they became spring boards for our next steps—and businesses which didn’t keep up with progress were left behind.

But government and even other businesses don’t always move as quickly as professional independent agents do. This is the case with the photo inspection process. When New York state mandated photo inspections some 30 years ago, the intent was to make use of what was then newer technology to help fight fraud. At the time, this seemed forward-thinking and even gave way to a new niche industry for getting the photo inspections done.

Unfortunately, it was never as successful as we all had hoped.

As we have progressed in our technological abilities, what formerly seemed like a good idea is now a complex and expensive process for insurers. It drives up the overall cost of auto insurance for everyone in New York state, and it has not proven to be a cost-effective deterrent to auto fraud. So we should progress, right? Drop the old, outdated process that’s costing everyone money and move on. When the bill first past many years ago, we didn’t have the facilities and technology to stop fraud, but now with automation there are many new tools to combat fraud now. Not so fast: Because this is a regulation, we can’t just agree that it is unnecessary and best forgotten—we have to repeal it. And while it seems like a no-brainer to save carriers and insureds time and money, we are now yoked with the mandate thanks to the lobbying efforts of certain interests that are making money off the requirement. PIANY has fought to reform the automobile photo inspection law for years. This year, as in others, the association was successful in obtaining sponsorship of a law (A.1305/S.4047, sponsored by Sen. Lanza and Rep. Zebrowski, among others) that would make it optional for carriers to participate in a photo-inspection requirement. Many of them have said they’d like to cease this burdensome process, but again, special interests held it up.

You’d think even bureaucrats and lawmakers would agree to save the public money and relieve insureds and carriers alike from obviously inconvenient and unnecessary processes. Nobody wants this anymore. Except for the one company that profits from taking the photos. This company, which employs just a few hundred people, has a strong lobby that takes to Albany and cries that these jobs are in jeopardy every time the photo inspection rule comes into question.

While CarCo used to be simply a photo inspection administrator, the company’s website emphasizes that its success is now based on HR solutions, employee background checks and other screening and investigative services. This says to me that CarCo recognizes their auto inspection services aren’t going to sustain it forever. Even CarCo has moved on —yet the company, and its extremely active lobbyists, are holding the rest of us hostage.