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The New York State Department of Financial Services (DFS) and Big I New York met on Thursday to discuss pending regulatory action addressing the establishment of uniform standards around the windstorm deductible trigger.  A recently-enacted law​ requires DFS to issue a regulation setting standards for the triggers.

Colloquially referred to as the “three C’s”, we emphasized the importance of prioritizing clarity, choice, and competition throughout the rulemaking process.  With more than 100 definitions in use, it can be difficult for consumers to make an informed decision, not to mention the confusion that multiple definitions can cause in the aftermath of a storm.  Additionally, many definitions are effectively the same but use different language.  Big I shared perspective on several areas that are ripe for simplification and greater uniformity.

While clarity is the primary objective, choice and competition are also important considerations.  Big I reiterated that DFS should be cautious about creating additional market disruption and recognize that consumers prefer to have options that align with their tolerance for risk and affordability.  This opened a dialogue around areas that could offer consumers choice, such as preserving the option to choose from more than one windspeed trigger.

The DFS shared that they will continue to meet with stakeholders as they prepare to issue their proposed rule, at which point Big I NY will review and provide comments as needed.  The rule will apply to all policies issued or renewed on or after the 180th day after it is adopted.  We appreciate DFS leadership on this and look forward to helping develop a windstorm definition environment that fosters a healthy and competitive insurance marketplace.