New York plans Insurance Exchange revival

by David Masters

Story link: New York plans Insurance Exchange revival

New York should aim to compete with Bermuda as a centre for insurance, the city’s Insurance Superintendent has claimed.

Eric Dinallo said he will continue to push for the revival of the defunct New York Insurance Exchange.

New York could compete for much of the business that goes to Bermuda, he said. Operating from New York would be a ‘great alternative’ for insurance and reinsurance companies.

The New York Insurance Exchange was set up in 1980 as a centralised marketplace for brokering and underwriting.

It was forced to shut down later in the 1980′s due to a period of severe losses.

Under New York laws, the exchange is still permitted to exist.

If revived, the exchange could be similar to Lloyd’s of London, where companies set up in a central location, and brokers shop around for various types of insurance.

Dinallo said if the exchange was re-established, it would be better positioned for success as it now has the support of some major insurance companies.

A working group has been set up to decide how the exchange would operate.