In this issue ...

• DFS Updates “Insured Value Added” Interpretation
• DFS Proposes Amended Special Risk Regulation
• NYIA Attends NCOIL Summer Conference
• DFS Updates Cybersecurity Resource Center
• Governor Hochul Announces Savings in Workers Compensation Insurance
• DFS Approves NYCIRB Loss Cost Indication
• DFS Approves NYCIRB Revised Rating Values
• DFS Approves Amendments to NY Statistical Plan
• WCB Eliminates Five-Minute Wait Time

DFS Updates “Insured Value Added” Interpretation

NYIA has been informed by the New York State Department of Financial Services (DFS) that they have updated their interpretation of “insured valued added,” including as it pertains to Insurance Law 2356, premium change notifications. DFS has indicated that “insured value added” pertains to an increase in coverage, including an increase in the limits of coverage, per Circular Letter Number 14 of 1986. This interpretation would result in inflation guard not being taken into consideration when determining if a premium increase exceeds 10 percent. DFS addresses how an “increase in coverage” should be treated further in the FAQ posted on their website. NYIA is continuing to engage with DFS in relation to the budget implementation requirements. If you have additional questions or would like a full list of the questions NYIA has posed with responses thus far, please reach out to Staci Steinfeld at ssteinfeld@nyia.org. 

DFS Proposes Amended Special Risk Regulation

This week DFS proposed an eighth amendment to 11 NYCRR 16 Special Risk Insurance (Regulation 86). The amendment pertains to the Free Trade Zone following the statutory change signed into law that removed the in-state underwriting requirement. The proposal also includes language to align the regulation with a prior statutory change related to the prohibition of FTZ policies being used to satisfy financial responsibility requirements. If you have comments you would like to submit to DFS contact Hoda Nairooz at DFS.PropertyCasualty.Letters@dfs.ny.gov by October 4, 2026. If you have comments you would like NYIA to submit, contact Staci Steinfeld at ssteinfeld@nyia.org by September 23, 2026.

NYIA Attends NCOIL Summer Conference

NYIA attended the National Council of Insurance Legislators (NCOIL) in Boston, Massachusetts. The conference provided valuable opportunities to engage with insurance industry representatives, regulators and legislators from across the country, while providing insights into national trends that may influence insurance regulation in New York. Notably, there was a panel on tort reform that included the National Insurance Crime Bureau, American Tort Reform Association, the Florida Insurance Commissioner and the New York State Trial Lawyers Association (NYSTLA). Discussions continued on the NCOIL model on insurers’ use of aerial imagery and a vote was delayed until November. NYIA will continue monitoring NCOIL developments and will keep members informed.

DFS Updates Cybersecurity Resource Center

DFS has refreshed the Cybersecurity Resource Center (or CRC) to make it easier for Covered Entities to find the information they need to understand cybersecurity best practices, protect company and consumer data, and comply with New York’s Cybersecurity Regulation (23 NYCRR Part 500). Updates include a streamlined site structure, refreshed content and revised FAQs to improve navigation and usability. Questions about the CRC refresh can be directed to CyberRegSupport@dfs.ny.gov

Governor Hochul Announces Savings in Workers Compensation Insurance   

Governor Kathy Hochul announced that insured employers statewide will see on average a 22 percent reduction in workers compensation insurance premium rates, an estimated savings of more than $1 billion for businesses or an average of $1,779 per policyholder in New York State. The rate reduction was approved by Department of Financial Services (DFS) and will take effect on October 1, 2026. The announcement notes that the reduction is part of the Governor’s larger affordability agenda.

DFS Approves NYCIRB Loss Cost Indication     

DFS has formally approved the New York Compensation Insurance Rating Board’s (NYCIRB) filing for a decrease of 21.9 percent in the overall loss cost level in New York State, effective October 1, 2026. Accordingly, insurers do not have to file to adopt the new loss costs or refile loss cost multipliers that are currently approved by DFS in order to utilize the October 1, 2026 loss costs. However, if an insurer seeks to change either its loss cost multiplier(s) or any other previously approved independently filed rating factor or value, it must do so by filing these changes with DFS for approval prior to use. NYCIRB has included their calculations in R.C. Bulletin 2659 for reference.

DFS Approves NYCIRB Revised Rating Values

Revised rating values for use with the New York Experience Rating Plan have been approved by DFS. The revised rating values are to be used in the rating of risks with rating effective dates on and after October 1, 2026. The annual loss cost filing, which was approved by DFS, included an update to rating values associated with the determination of experience rating modification factors. Changes to the rating values are reflected in the NYCIRB’s Experience Rating Plan pages.

DFS Approves Amendments to NY Statistical Plan

DFS has approved amendments to the New York Statistical Plan which will be effective January 1, 2027. The amendments concern implementation of the Phoenix System that update the treatment of Unit Statistical Report replacements and adopt Informational Edits. NYCIRB has published the modified and final pages from the Statistical Plan, which reflect the approved amendments.

WCB Eliminates Five-Minute Wait Time

The Workers Compensation Board (WCB) eliminated the automatic five-minute wait time for anticipated parties of interest (POIs) to sign in before a virtual hearing. This newly adopted policy still requires Workers’ Compensation Law Judges (WCLJs) to wait for all POIs to sign in before starting a hearing. For more information please see the Virtual Hearings section of the Board’s website.