In one of its first opportunities to demonstrate that it “means what it says” by its stated objective “[t]o encourage, promote and assist banking, insurance and other financial services institutions to effectively and productively locate, operate, employ, grow, remain, and expand in New York state; . . .” the new Department of Financial Services has taken a called Strike One!
In November 2011, the Superintendent of Financial Services, Benjamin Lawsky, issued a press release touting his newly issued regulation “to implement a law that deregulates most insurance business with large, sophisticated companies or public entities.” In the release, Mr. Lawsky states that “[t]he new law and regulation enhance the ability of insurers to underwrite large commercial insureds in New York, increase speed to market for certain insurance products not currently exempted and eliminate barriers to economic development in New York.” Unfortunately, the effect of the new law and regulation on the marketplace are unlikely to match the rhetoric.
I have written an article on the new law and regulations that adds a new class of risks -- for large commercial insureds with significant risk management capabilities -- that can be written by domestic New York companies in the "Free Zone." This article points out the reasons why, in my opinion, the new law and regulations will not deliver on the promised benefits to the market. If you are interested in reading the full article click here for a link to the Publications page of my website to access a pdf copy of the article titled "Strike One!"