New York’s insurance regulator has ordered American Transit Insurance Co. (ATIC), the city’s largest taxi insurer, to consider a sale after revealing serious financial instability and potential improprieties. A report detailing the company’s “massively deficient” reserves has raised concerns about the potential impact on thousands of taxi drivers and the city’s economy if ATIC fails. Despite being aware of the company’s dire situation for several years, regulators have taken limited action to address the issues. ATIC, which holds a significant share of the market, has reported substantial losses and is urged to seek additional funding to resolve its insolvency.
