In New York's FY 2027 enacted budget signed by Governor Kathy Hochul, the New York State Department of Financial Services is given a broader insurance oversight role. The package includes measures that require express DFS approval before auto insurers raise rates, require insurers to notify policyholders about auto and home insurance rate changes, bar auto insurers from using homeownership status, occupation, education level or ZIP code in pricing, and require insurers to give DFS detailed information on how they price multifamily residential building policies. The auto insurance provisions sit within a wider anti-fraud package aimed at staged accidents and inflated claims. They cap payouts for drivers engaged in criminal conduct at the time of an incident, narrow the definition of serious injury for pain and suffering or emotional distress claims, limit recoveries where a driver is mostly at fault, set a legal threshold intended to prevent excess insurer profits and return savings to consumers, and allow prosecutors to seek criminal penalties against people who organize staged accidents. The budget also directs DFS, the Department of Motor Vehicles, the Division of Criminal Justice Services and the New York State Police to take a more proactive coordinated approach to enforcement. For residential property insurance, the new reporting requirement is intended to give DFS a better understanding of the multifamily market as premiums rise and coverage options shrink.
New York State Department of Financial Services2026-05-28
New York State Department of Financial Services gains new oversight of auto insurance rate increases and multifamily property pricing in New York FY 2027 Budget
The New York State Department of Financial Services gained broader insurance oversight powers in the FY 2027 budget, including prior approval of auto insurance rate increases, new policyholder notification requirements for auto and home rate changes, restrictions on certain non-driving rating factors, and detailed reporting on multifamily residential property pricing. The budget also introduces an anti-fraud package that caps payouts for drivers engaged in criminal conduct, narrows the definition of serious injury, limits recoveries where a driver is mostly at fault, and authorizes criminal penalties for organizers of staged accidents, while directing DFS and other agencies to coordinate enforcement.