Governor Hochul sent a media release today announcing DFS’s issuance of a circular letter with guidance regarding implementation of auto reforms included in this year's state budget. The release indicates that the anticipated cost savings need to be incorporated into current and future rate filings. The circular is directed to all insurers authorized to write motor vehicle insurance in New York State, the New York Automobile Insurance Plan, and rate service organizations.

The circular letter’s intent is to advise entities to “reflect the impact of these reforms in all pending motor vehicle insurance rate filings by August 31, 2026 and in all future motor vehicle insurance rate filings (including pending and future filings subject to flex rating under Insurance Law § 2350) submitted to the Department of Financial Services (the “Department”).”

The Times Union ran an article on the Governor’s and DFS’s intentions shortly before anything was officially released. NYIA was quoted in the article, which may require a subscription to access. The association’s full statement is below for reference.

“NYIA appreciates the current focus on reducing core cost drivers to make insurance more available and in turn affordable. We stand with our policyholders in supporting solutions to deter fraud, curb excessive litigation and ensure a stable and sustainable insurance marketplace for all of New York. Following the passage of the state budget, NYIA looks forward to working with the Governor and the Department of Financial Services, as well as with the Legislature, as new laws intended to address fraud and excessive litigation go into effect to ensure there is greater market stability and benefits for consumers.”

Please contact Staci Steinfeld at ssteinfeld@nyia.org with any questions.