New York State Department of Financial Services (DFS) Acting Superintendent Kaitlin Asrow used testimony at a joint legislative hearing on Governor Hochul’s fiscal year 2027 Executive Budget to set out DFS’s priorities on affordability, innovation, and stability, and to brief lawmakers on recent supervisory and consumer-protection actions. The statement highlighted a package of budget proposals focused on auto and homeowners’ insurance affordability, digital safety governance, health insurance access and claims processes, and student loan borrower protections, alongside DFS operational upgrades such as expanded DFS Connect functionality and new Buy Now, Pay Later (BNPL) implementing regulations. On affordability, DFS cited approval of nine new Banking Development Districts and branches (including three credit unions), expansion of New York’s Community Reinvestment Act to non-bank mortgage lenders, and more than USD 134 million returned through restitution. Insurance and health measures referenced include behavioral health access rules requiring an initial mental health or substance use disorder appointment within 10 days and mandating out-of-network coverage at in-network prices when network standards cannot be met, plus regulations requiring commercial insurers to collect voluntarily disclosed demographic data; in January 2026 DFS also requested insurer data on primary care spending. The Executive Budget proposals described include mandatory premium discounts tied to loss mitigation for auto and property insurance, insurer filings on available discounts and utilisation, a study to update the methodology used to measure excess auto insurer profits and return excess profits to policyholders, and a “profitability benchmark loss ratio” for homeowners’ insurance to determine excess profits; DFS is also analysing how to incorporate climate and catastrophe data into insurance filings. On innovation and stability, DFS Connect has been expanded to support consumer complaint tracking for prescription drug prices and pharmacy benefit managers, insurance filings and licence renewals, and banking and virtual currency examinations. The testimony also pointed to DFS’s end-2025 internal artificial intelligence use policy, prior AI guidance for regulated entities, completion of amendments to DFS’s cybersecurity regulation in November 2025, and new BNPL regulations covering interest rates, disclosures, dispute resolution, late fee limits, data privacy, and underwriting guidelines. Budget-related stability initiatives included rebuilding the Insurance Frauds Bureau (with headcount up 28% over six months), a proposed cross-agency fraud task force, expanded continuity-of-care protections (90 days or through completion of post-partum care), a proposal to reduce repetitive prior authorisations for chronic conditions, and student loan measures such as enhanced refinancing disclosures and strengthened co-signer release protections; DFS also plans consumer education campaigns on insurance discounts and health insurance rights and claims processes.
New York State Department of Financial Services 2026-02-26
New York State Department of Financial Services outlines FY 2027 executive budget agenda including insurance affordability reforms and new BNPL rules
New York State Department of Financial Services Acting Superintendent Kaitlin Asrow highlighted DFS's priorities on affordability, innovation, and stability during a legislative hearing on Governor Hochul’s fiscal year 2027 Executive Budget. Key proposals include enhancing insurance affordability, digital safety governance, and student loan borrower protections, alongside DFS operational upgrades like expanded DFS Connect functionality and new Buy Now, Pay Later regulations. Additional initiatives focus on expanding banking services, improving health insurance access, and incorporating climate data into insurance filings.