2017 New York Legislative and Regulatory Outlook for Property-Casualty Insurers

WASHINGTON, D.C. (PRWEB) January 09, 2017

The American Insurance Association (AIA) issued the following legislative and regulatory outlook for property-casualty insurers in New York. With the start of the state's 2017 legislative session, AIA staff is available to help recap and break down important policy issues.

A statement from Alison Cooper, AIA's vice president for state affairs, northeast region, follows:

"As we start the 2017 legislative session, we expect to continue to work on several issues that remain unfinished from last year. Most notable is legislation governing the use of transportation network companies (TNCs) in New York State. The legislation, which we hope will be enacted this year, sets forth necessary insurance and other requirements that will allow for the operation of TNCs. Currently, TNCs operate in New York City, but are prohibited elsewhere in the state. AIA has been, and remains, actively involved in efforts to enact TNC legislation and thanks the Governor and Legislature for their continued leadership and attention to this issue.

Another top priority for AIA is promoting commercial lines modernization, which is part of a nationwide effort. Policy form and pricing regulation of property-casualty insurance markets has remained largely unchanged for decades. By reducing filing rules and delays, we can create a more dynamic and flexible regulatory system, effectively promoting a competitive insurance marketplace and focusing regulatory attention on protecting and overseeing financial solvency of insurers.

AIA will be filing comments with the Department of Financial Services at the end of this month on their revised cybersecurity regulation. Issued last week, the revised regulation makes a number of significant improvements and represents a critically important step toward a risk-focused approach. Overall we are encouraged by the changes and appreciative of the Department's willingness to provide an additional 30 day comment period. As this is a top priority for our members, we share the Department's goal of protecting customers' information and corporate networks from cyberattacks.

Following up on their October 2016 proposal, the New York Workers' Compensation Board is expected to continue discussions regarding the establishment of a formulary as part of their proposed Workers' Compensation Pharmacy Benefit Plan. A key feature of the plan is the establishment of a prescription drug formulary. In comments to the Board last November, AIA endorsed the formulary, and strongly believes a closed drug formulary can successfully reduce system costs while more importantly, ensuring that the injured worker receives the proper treatment.

Finally, it is our hope to see legislative action on asbestos trust transparency in New York. This legislation is necessary to ensure that asbestos-related claims are handled in a transparent manner. It is essential that the courts and parties involved have the exposure evidence needed for the appropriate allocation of liability in civil actions. Establishing asbestos trust transparency has been a major issue for AIA throughout the country over the last decade."

Read the full story at http://www.prweb.com/releases/2017/01/prweb13965261.htm