PIANY is backing a new legislative proposal that would allow the Department of Financial Services to hire consultants to assist in reviewing insurance rate and form filings. The bill, S.5321, sponsored by Sen. Jamaal Bailey, D-36, would streamline the approval process for new insurance products and pricing, which would benefit insurers and consumers.
What the bill does
S.5321 would amend the state’s Insurance Law so that the DFS superintendent of insurance would have the authority to engage consultants to help with reviewing rate and form filings submitted by insurers. The bill would ensure that when the DFS deems it necessary, additional expertise could be brought in to accelerate the evaluation process, reduce regulatory backlogs and bring new products to market faster.
One key provision of the bill is that the cost of hiring these consultants would be covered by the insurer submitting the filing, not the state. This ensures that the financial burden would not fall on taxpayers while still allowing DFS to expand its capacity when needed.
Why PIANY supports the bill
PIANY believes this bill would provide a practical solution to a long-standing challenge in the insurance industry: delays in getting new products and pricing approved. When insurers submit filings for new coverages, updated policies or revised pricing structures, they must wait for DFS approval before these offerings can reach consumers. However, resource constraints at the DFS can slow down this process, delaying innovation in the marketplace.
By allowing DFS to bring in additional expertise when needed, S.5321 would ensure that insurers receive timely responses to their filings, leading to faster approval of new insurance products, providing consumers with more options.
Hopefully, this will lead to more competitive pricing, as insurers could adjust rates more efficiently. It would also allow for greater innovation in the insurance sector, as companies would be able to introduce new coverage solutions without unnecessary delays.
Keeping New York competitive
Several other states have modernized their regulatory processes to allow for faster reviews of insurance filings. If New York state does not follow suit, it risks falling behind in terms of insurance innovation.
What the future holds
Currently, S.5321 is being considered by the Senate Insurance Committee. PIANY urges lawmakers to support and pass this bill to ensure a more efficient, responsive and competitive insurance market in New York state.
By allowing the DFS to hire consultants as needed, this bill would remove unnecessary delays, help insurers bring new products and pricing to consumers faster while maintaining regulatory integrity.
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.
