New York Insurance Superintendent Eric Dinallo said on July 07 a revival of the defunct New York Insurance Exchange could happen as early as next year. Dinallo, in a telephone interview from New York, said the next 18 months was a "realistic horizon" to revive what is seen as the US equivalent of the Lloyd's of London market.
The original New York exchange, which created a centralised marketplace for brokering and underwriting, was founded to great fanfare in 1980 but later that decade closed its doors after the industry was hit by a severe period of losses. New York laws permitting the exchange still exist.
This time around Dinallo sees the exchange as better positioned for success. "It is only going to work if there is client demand, but I believe that is falling into place." The exchange would allow underwriters to form syndicates to reinsure, and insure unusual or very large exposures. Dinallo, who is forming a working group to set out exactly how the exchange could operate, has already tapped the views of a wide range of industry participants including both US and foreign insurers, some of the major insurance brokerages and possible investors.
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