New York insurance exchange could rival Lloyd’s

by Gill Montia

Story link: New York insurance exchange could rival Lloyd’s

The Governor of New York has launched a bid to create a new international insurance exchange.

According to The New York Times, plans have been outlined in Governor David A Paterson’s recent State of the State address, with 2,000 to 3,000 new jobs in prospect.

The new venture would specialise in complicated risks, such as oil rigs in hurricane regions, and building that are potential terrorist targets.

As such, it could eventually rival Lloyd’s of London, or exchanges in Bermuda and Dublin.

The state of New York already has legislation in place to cater for such an enterprise; an earlier attempt to set up an international insurance exchange failed in the 1980s, although lessons have been learnt.

A working group is being set up to further plans which could involve hedge funds insuring catastrophic risks to balance their investment portfolios, The New York Times reports.