New York State
FOR IMMEDIATE RELEASE
DEPARTMENT REPORTS SMOOTH Y2K TRANSITION
FOR NEW YORKS INSURANCE INDUSTRY
Superintendent of Insurance Neil D. Levin today announced that the states insurance industry rollover to Y2K has not resulted in any significant transition problems.
"For the past four years, Governor Pataki has made Y2K the States number one technology priority. I am pleased to report that the resources and precautions taken by the states insurance industry in preparation for Y2K were successful as there are no insurance companies in the state with Y2K concerns," said Levin. "New York State consumers should feel confident that they will receive benefits under their policies without any problems related to the Y2K transition."
As of January 5, 2000, 92 percent of the states insurance companies, representing 99% of net premium written, filed the Year 2000 Rollover Survey and reported no significant transition problems. The Department has contacted all New York-based insurance companies that have not yet filed the Year 2000 Rollover Survey. In addition, the Department will continue to monitor New Yorks insurance industry through updated surveys on February 3, and April 5, 2000.
The Department, in coordination with the Y2K Industry Preparedness Task Force of the National Association of Insurance Commissioners (NAIC), developed this internet-based post Year 2000 survey to gather information about the insurance industrys ability to conduct business during the transition. New York State was one of 46 states that required insurers to participate in the survey. The survey consists of 11 questions on how systems performed during the rollover periods from December 31, 1999 through the first several business days of 2000.
Governor Pataki established the State's Y2K Compliance Project in April 1996 and identified Y2K as the State's "number one technology priority." New York State is also recognized as a national leader in addressing Y2K compliance by the President's Council on Y2K, the federal Office of Management and Budget and the National Association of State Information Resource Executives, and other organizations.
The Department has taken many steps to ensure Y2K compliance within the insurance industry in New York State. Highlights include:
In 1997, the Department, in a circular letter, directed the industry to provide a Year 2000 plan overview with key milestones and a budget breakdown of the cost components of such a plan;
Beginning in 1998, the Department required that each insurer provide quarterly reports apprising the Department of ongoing status of the Year 2000 initiatives;
Since 1998, the Department did over 200 special Y2K investigations of insurers; and
The Department required that the Discussion and Analysis supplement to insurers 1998 Annual Statement encompass Year 2000 issues.