Who is responsible for setting insurance rates?

In New York, the New York Department of Financial Services (NYDFS) is responsible for setting insurance rates. NYDFS is the state’s banking and insurance regulator and has regulatory oversight over almost all insurance companies doing business in the state. The NYDFS regulates insurance rates to make sure they are legal and appropriate for the company issuing the insurance. All insurance companies must submit a filing with the NYDFS in order to charge any rates for their products. The NYDFS reviews the filing to make sure the rates meet certain legal requirements and are fair and reasonable. In addition to reviewing the rates set by insurers, the NYDFS also has the authority to set rates for homeowners and automobile insurance policies in certain geographic areas. The NYDFS reviews various factors such as the past and current claims experience of the insurer, operating costs, competition from other insurers, and the insurer’s financial condition before setting rates. Therefore, the NYDFS is ultimately responsible for setting insurance rates in New York. The department makes sure the rates are fair and reasonable and in line with legal requirements.

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Who is responsible for setting insurance rates?

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