2026 Pennsylvania Legislative and Regulatory Outlook

Pennsylvania’s 2026 legislative and regulatory environment is expected to be highly active, driven by sustained legislative interest in consumer protection, affordability, and the use of technology in regulated markets. For insurance and financial services organizations, the key risk is not a single sweeping reform, but rather a steady flow of bills, hearings, and regulatory guidance that can quickly translate into operational obligations.

An Active Legislature With a Consumer Focus

Pennsylvania lawmakers have shown a strong appetite for oversight of insurance and financial services practices, particularly where cost, access, and fairness intersect. This has resulted in:

• Frequent hearings and task forces

• Issue-specific legislation rather than omnibus reform

• Increased public and political attention to industry practices

For regulated entities, this means close monitoring is essential—even for proposals that initially appear exploratory.

Insurance: AI Governance and Market Conduct in Focus

The Pennsylvania Insurance Department has issued guidance reminding insurers that the use of artificial intelligence and advanced analytics must comply with all existing insurance laws. In 2026, this guidance is expected to translate into exam-level scrutiny.

Insurers should be prepared to explain:

• How automated tools influence underwriting, pricing, and claims

• What controls exist to ensure fairness and compliance

• How outcomes are monitored and documented

Market conduct oversight—particularly around claims handling, underwriting practices, and consumer disclosures—remains a consistent regulatory priority.

Data Privacy Legislation Remains a Live Issue

Unlike some neighboring states, Pennsylvania does not yet have a comprehensive data privacy statute. However, privacy legislation continues to be actively debated, making 2026 a critical year for preparedness.

Even absent immediate enactment, organizations should expect:

• Continued legislative pressure around consumer data rights

• Hearings and public scrutiny of data use practices

• Spillover expectations from other states’ privacy regimes

Preparing now allows organizations to respond quickly if legislation advances.

Financial Services: Fairness, Transparency, and Oversight

For financial services firms, Pennsylvania’s focus remains on:

• Consumer fairness and transparency

• Examination and supervisory oversight

• Documentation of compliance practices

  
  

Technology-enabled pricing, personalization, and data-driven decision-making are areas likely to attract legislative and regulatory attention.

What This Means for 2026 Planning

Organizations operating in Pennsylvania should:

• Maintain robust legislative monitoring throughout the session

• Prepare AI and data governance materials for regulatory review

• Anticipate rapid movement from hearings to legislative proposals

• Coordinate closely across compliance, legal, and business teams

Bottom Line

Pennsylvania’s 2026 outlook presents heightened policy activity and oversight risk, balanced by opportunities for early engagement and education. Companies that monitor closely, prepare documentation early, and engage constructively will be best positioned to manage compliance and operational impacts.