The ATIC (American Transport Insurance Company), which insures 65% of New York City’s for-hire transportation services, reported $700 million in losses in the second quarter, bringing its long-standing insolvency into public view. After years of warnings and inaction as losses grew, state regulators are now required to intervene to stabilize the industry and protect both drivers and consumers from increased prices. The Department of Financial Services is under scrutiny as it seeks a solution to avoid shutting down the ATIC – a move that would ultimately leave 75,000 vehicles unable to operate legally. Dr Robert Hartwig, a member of the Federal Reserve Board’s Insurance Policy Advisory Committee and professor at the University of South Carolina, called the situation “absolutely astonishing and essentially unprecedented,” stating there is “a lot of blame to go around”. This article examines the ATIC’s defense which blames its losses on widespread insurance fraud, as well as history of the organizations deep-rooted connections to state politics spanning over five decades. To read more, click here.