The Risk and Insurance Management Society, Inc. (RIMS) expressed initial reservations today regarding New York Governor Andrew Cuomo’s proposal to merge the New York Insurance Department (NYID) into a combined Department of Financial Regulation (DIFR).
RIMS recognizes the validity of the stated goals, namely reducing costs and increasing efficiency, but it is concerned that the NYID’S consumer protection mission may be weakened in the process of merging the two departments.
“The Insurance Department has the necessary expertise to understand and regulate the insurance industry,” says John Phelps, director, business risk solutions, Blue Cross and Blue Shield of Florida, Inc. and board liaison, RIMS External Affairs Committee. “We hope that the efforts the Department has made to increase consumer protection will not be negatively impacted by this proposed merger.”
RIMS looks forward to further information from the Governor regarding the proposal, and to working with all interested parties moving forward.