The New York Department of Financial Services published an Industry Guidance describing expectations of insurers in preparing for and responding to disasters. Insurers should have safeguards in place to ensure that a disaster does not affect their ability to continue doing business and servicing their consumers.

Even before a disaster has occurred, insurers should have already completed the Disaster Response Plan Questionnaire, where they summarize their disaster response plan and show approval of the plan. Insurers must also complete a pre-disaster data survey to the Department, breaking down the number of policies they have in effect in each county.

Insurers should at least annually reflect on their business continuity and disaster response plans, where they predict the consequences of a disaster and develop recovery responses. They should consider scenarios where a business interruption would have the greatest impact, the operational impact of damage to buildings, damage or breakdown of machinery or systems, and resources necessary for the business to continue to function.

A disaster continuity plan should include the following items, among others:

  • Define the scope and objectives of the plan
  • Address significant business activities and assign a restoration priority to each one
  • Define the responsibilities of employees
  • Address communication between employees, customers, producers, adjusters, and others
  • Results of a business impact analysis
  • Include detailed procedures and logistics for all recovery strategies
  • The plan should be reviewed at least annually and approved by the insurer’s board of directors or governing body

A disaster response plan should include the following items, among others:

  • The jurisdiction where the insurer is domiciled
  • A list of the insurance products sold by the insurer
  • The name of the person responsible for activating and deactivating the plan
  • The responsibilities of the disaster response team
  • The metrics by which a disaster is identified, and whether all or part of the plan is activated 
  • The training methods of employees and agents in dealing with a disaster
  • Whether the insurer has a number or website for customers to report claims
  • The plan should be reviewed at least annually and approved by the insurer’s board of directors or governing body

This guidance applies to all authorized property/casualty insurance companies, co-operative property/casualty insurance companies, financial guaranty insurance corporations, mortgage guaranty insurance companies, title insurance corporations, non-profit property/casualty insurance companies, reciprocal insurers, captive insurance companies, the New York State Insurance Fund, the New York Property Insurance Underwriting Association, the New York Medical Malpractice Insurance Plan, the New York Automobile Insurance Plan, the Motor Vehicle Accident Indemnification Corporation, rate service organizations, and the Excess Line Association of New York.

The pre-disaster data survey must be submitted to the Department by June 27, 2025, and the disaster response plan must be submitted by August 15, 2025.

The guidance can be found here.