New York: The Change Has (Started to) Come

“We are excited to see what sort of efficiencies in procedures the new department might implement,” says Tim Dodge, a spokesman for the Independent Insurance Agents & Brokers of New York (IIAB), De Witt, N.Y..

However, the IIAB is still concerned about how DFS will draw the line between banking and insurance. Banking regulators are not going to be as knowledgable about insurance products as insurance regulators are, Dodge says.

Because the merger is supposed to help save money, layoffs or attrition could leave already overworked insurance regulators with even more of a workload — a concern to agents because of the already lengthy time it takes, they say, to get the standard bread and butter stuff (the rate and form filing; licensing) done.

Howard Mills who is now the insurance industry director at Deloitte L.L.P., New York, and has been the New York insurance superintendent, says he believes the old New York insurance agency “although consolidated, will remain a silo.” Mills tamped down fears of banks seizing the day. “I don’t see a lot of crossover.” He wouldn’t expect to see bank examiners going into insurance companies to examine them. “Nor would it wise,” he says.

“We’ll get a better idea in 6 months or so” about how things have shaken out, Dodge says. The merger to streamline was aimed at saving money, so elimination of duplicative services is not out of the question.

A spokesman for the insurance department says there will be a big press kickoff event Oct. 3 to announce the DFS merger, but about any possible future layoffs or attrition he says only, “When there is something to announce, we will announce it.”

Other New York State Insurance Department coverage from National Underwriter Life & Health:

• New York Renews Life Settlement Licensing Regs
• New York Requires Use of Master Death File
• New York Insurance Regulators Get New Boss
• New York Department Answers Regulation 194 Questions
• New York Seeks Fraud Investigators