ALBANY, N.Y.—The New York State Department of Financial Services, which officially launched last week with promises to save money and collaborate with business, has taken early steps that seem business-friendly, experts say.

New York Gov. Andrew Cuomo created the DFS in March by merging the New York State Banking Department and New York State Department of Insurance. The agency is “on track” to save more than $25 million this year, or at least 10% of its budget, New York Superintendent of Financial Services Benjamin Lawsky said at Pace University in New York at last week's launch. He confirmed that the savings go to New York-domiciled insurers, which fund their regulators by paying fees.

“If our budget is smaller, that means we're assessing the industry less and taxing the industry less to pay for our regulations and our operations,” Mr. Lawsky said in an interview. “When you talk about a way to help try and kick-start the economy and help these industries thrive, that's a great place to start.”

Government officials continue searching for ways to create jobs in the wake of the 2008 financial crisis while also crimping their own spending, experts say. As all New York agencies “carefully manage” their budgets to operate more efficiently, the DFS already has achieved savings through reductions, “tight controls” and other measures, an insurance department spokesman said in an email.

Insurers have pushed to pay lower fees for years, experts say.

“It remains to be seen, but we're very optimistic about the DFS being business-friendly,” said Ellen Melchionni, president of the New York Insurance Assn. Inc. in Albany, which represents the property/casualty industry. “They're saying all the right things.”

Ms. Melchionni said she is “thrilled” that James Wrynn, who formerly headed the stand-alone insurance department, will stay on at the DFS as deputy superintendent for financial services.

Mr. Wrynn now leads a team tasked with persuading businesses to bring jobs and capital to New York state, Mr. Lawsky said. As superintendent, Mr. Wrynn took business-friendly steps such as proposing to revive the New York Insurance Exchange, a Lloyd's of London-style marketplace through which buyers could purchase insurance and reinsurance.

“Wrynn has been an effective cheerleader for New York state as a domicile,” said Howard Mills, director and chief adviser of Deloitte Services L.P.'s insurance industry group in New York, who had formerly served as the New York state insurance superintendent.

“All the indications are that the governor's directive is to be receptive to business, so I have every expectation that they'll be open to the industry,” Mr. Mills said.

Insurance trade group representatives say Mr. Lawsky seeks their input. Gary Henning, Albany-based vp of the American Insurance Assn.'s northeastern region, for example, said Mr. Lawsky had asked him months ago if it was important to have a separate insurance division within the DFS. Mr. Henning said the agency risked losing its institutional memory if it were combined with banking people who might not understand the history of insurance. “We were happy that he listened, was open-minded, and came up with an administrative structure that makes sense,” Mr. Henning said.

The DFS, which consists of divisions in insurance, banking, capital markets, real estate finance, and financial frauds and consumer protection, has the power to review all financial products. Gov. Cuomo originally wanted the agency to have enforcement powers comparable to those held by the attorney general's office, but 14 trade organizations representing the insurance and banking industries opposed the idea. As a result, the DFS did not get those powers, experts say.

“The industry is rightly very concerned about the heavy emphasis on enforcement that was made during the legislative process,” said Matthew Gaul, a New York-based partner at Steptoe & Johnson L.L.P. who formerly worked for the New York insurance department. “At the same time, I think (Mr. Lawsky and others are) serious about trying to create a good environment for people to do business in New York.”

John R. Phelps, board liaison for the Risk & Insurance Management Society Inc. external affairs committee and director-business risk solutions at health insurer Blue Cross & Blue Shield of Florida Inc. in Jacksonville, said RIMS “applauds” Mr. Lawsky's goal of better consumer protection.

“We stand ready, willing and able to help him make that a reality,” Mr. Phelps said. He added that the “thesis behind combining and being more efficient is a sound one.”