Brooklyn’s Insurance Revolution: How Local Agencies Are Transforming to Meet the Diverse Needs of America’s Most Dynamic Borough

Brooklyn’s insurance landscape underwent significant transformation in 2024, as local agencies adapted their strategies to serve one of America’s most culturally diverse communities. The commercial property insurance and reinsurance marketplaces stabilized in 2024, yet the real estate insurance industry remained in one of the “hardest” markets the insurance industry has seen in 30+ years. This challenging environment has pushed Brooklyn’s insurance agencies to innovate and develop more personalized approaches to meet their community’s evolving needs.

The Brooklyn Insurance Market Landscape in 2024

Construction costs are up over 50-60% nationwide since 2019, and claim costs have increased substantially as well. For Brooklyn residents, this translates to unique challenges. A full coverage policy in Brooklyn typically costs $4,706 annually, nearly twice the national average of $2,399, and more than the New York statewide average of $2,253 per year.

Several factors have contributed to Brooklyn’s complex insurance environment. Re-insurance costs for wind/hurricane are quite expensive in NYC, and insuring properties near the water is becoming especially hard, with many insurance companies requiring 1 mile or more from water to insure a property, while some national insurance companies require 2-5 miles. Additionally, insurance companies began underwriting DOB building violations several years ago, resulting in more properties becoming ineligible for insurance from many standard carriers.

How Local Agencies Are Adapting to Serve Diverse Communities

Brooklyn’s remarkable diversity has prompted local insurance agencies to develop culturally sensitive and linguistically appropriate services. Local agents emphasize their knowledge and understanding of the people in their community to provide customers with an outstanding level of service. Many agencies now offer services in multiple languages, including Spanish, Russian, Hebrew, Yiddish, Polish, Italian, Armenian, Persian, Greek, and Mandarin, reflecting Brooklyn’s multicultural population.

Brooklyn is a vibrant and diverse community with a range of insurance needs, with thriving small business scenes, bustling urban areas, and suburban neighborhoods each presenting unique risks and challenges, requiring agencies to have a deep understanding of Brooklyn’s demographic and economic landscape.

Local agencies have also recognized the importance of serving specific community segments. Some agents have opened agencies specifically to serve the Orthodox Jewish community in areas like Midwood, recognizing that this is a very large and close community. Similarly, agencies serving areas like Greenpoint/Williamsburg for over 20 years have staff fluent in Polish to serve the local Polish community.

Innovative Solutions for Brooklyn’s Unique Challenges

Forward-thinking Brooklyn agencies are implementing several strategies to better serve their diverse clientele:

• Comprehensive Risk Assessment: Agencies recognize that Brooklyn’s thriving business community faces unique risks and challenges, requiring expertise to safeguard company assets with comprehensive insurance packages.
• Educational Approach: Local agencies focus on being more than just policy sellers, providing education needed for customers to make informed decisions about protecting their assets.
• Independent Brokerage Model: Independent brokers can select products from any insurance company in the entire marketplace and find ones that provide the best protection for families at prices that fit their budgets.
• Community-Focused Service: Longtime area residents recognize that Brooklyn neighborhoods are home to working-class people who need a strong safety net, and they appreciate the contributions residents make to the community.

Technology and Accessibility Improvements

New products designed to promote better relevance and accessibility have emerged and continue to grow in popularity, including offerings like on-demand insurance for gig workers and usage-based products informed by telematics and sensor data. Brooklyn agencies are embracing these technological advances to better serve their tech-savvy and diverse customer base.

Companies are beginning to transition from on-premises, legacy systems to cloud-based offerings, though only 38% of L&AH-only and 33% of P&C-only carriers have implemented replacements or upgrades of legacy or modern on-premises core systems.

A Local Success Story: Max J. Pollack & Sons Insurance

One exemplary case of adaptation to community needs is Max J. Pollack & Sons Insurance, a family-owned Insurance Company Brooklyn that has been serving the local community for over 80 years. The company serves clients throughout the entire greater New York City area from their office in Park Slope, Brooklyn, and is a family business that has been serving the New York Metropolitan community for over 75 years.

Over the years, Max’s son and now grandson have continued Max’s legacy of providing customers with outstanding insurance products at competitive prices and unparalleled one-on-one customer service, believing that their ongoing success is due to extensive insurance industry knowledge coupled with old-fashioned, personalized attention to customers’ needs.

The company exemplifies how Brooklyn agencies are adapting by maintaining strong community roots while expanding their service area. Starting with a store in Red Hook, Brooklyn to serve the local community, Max’s business grew beyond Brooklyn to every borough of NYC and today extends throughout the Empire State and the entire greater New York City area.

Looking Forward: The Future of Brooklyn Insurance

Property insurance rates are expected to continue the trend of 2024 and soften further in 2025, providing some relief to Brooklyn residents and businesses. However, many market conditions in auto remain unchanged in 2024, with rates continuing to rise faster than overall inflation due to more frequent and costlier accidents.

Brooklyn’s insurance agencies are positioning themselves for continued success by focusing on personalized service, community engagement, and technological innovation. Despite challenges, some insurance lines such as management liability, cyber and workers’ compensation remain stable, with adequate capacity and consistent rates, particularly for organizations with effective risk management strategies and good risk profiles.

As Brooklyn continues to evolve as one of New York’s most dynamic boroughs, its insurance agencies are proving that understanding local community needs, embracing diversity, and maintaining strong customer relationships are key to thriving in an increasingly complex market. The borough’s agencies are not just adapting to change—they’re leading the way in creating more inclusive, accessible, and community-focused insurance services.