(Dewitt, New York, Aug. 31, 2017) - Richard MacDonald, CPCU, ARM, AIM, chair of the board of the Independent Insurance Agents & Brokers of New York, issued the following statement today. The statement is in response to the New York State Department of Financial Services proposed changes to regulations that require insurance agencies and brokerages to annually notify customers about how their personal financial information might be shared with third parties.

"IIABNY and its member independent insurance agents and brokers are gratified that the department has proposed this change. We feel a great sense of obligation to protect the privacy of our customers. However, the current regulation requires agents and brokers to send privacy notices to customers every year, even when they share the information in situations where the customers cannot opt out of having their information shared, and when the agency's practices have not changed since the last privacy notice was provided. Such a situation might be where the agency must share the information in order to provide a service the customer requested or to obtain alternative insurance proposals for the customer.

A change in federal law enacted nearly two years ago made this requirement unnecessary in these situations. IIABNY contacted the department last year and urged it to remove the requirement from the regulation. The department's action yesterday is the first step toward doing so.

We take our customers' privacy very seriously. In situations where an agency's information-sharing practices have changed or where it shares information in ways to which customers can object, we recognize the importance of keeping customers informed. However, where nothing has changed and the agency does not share customer information unnecessarily, providing the notices is a costly burden that does not benefit customers but distracts agents from their purpose of helping their customers manage their risks of loss. We are grateful to the department for reducing this burden.

As the organization that suggested this change to the department, IIABNY whole-heartedly supports its adoption following the end of the public comment period."

About IIABNY

The Independent Insurance Agents & Brokers of New York, Inc. has represented the common business interests of independent insurance professionals since 1882. More than 1,750 agencies and their 13,000 plus employees currently rely on the DeWitt, New York-based not-for-profit trade association for legislative advocacy, continuing education and other means of industry support. In addition, most IIABNY members proudly identify themselves as Trusted Choice® agents and brokers, a national consumer brand uniting more than 21,000 independent agencies across the United States.

For more information, go to www.trustedchoice.com or www.iiabny.org.