New York to revive Insurance Exchange: report

The New York Insurance Exchange, once seen as the U.S. equivalent of the Lloyd's of London market, could be set for a return, according to a report by Reuters.

New York Insurance Superintendent Eric Dinallo is believed to be exploring the possibility of reviving the exchange, originally founded in 1980, having recently held meetings with those involved in setting it up.

David Neustadt, a spokesman for the New York Insurance Department, said: "He is now at the point of pulling together a working group."

The original New York Insurance Exchange ran for about seven years but was hit by a particularly severe period of losses in the late 1980s, leading to its closure.

The laws permitting the exchange are still on the state's books, and the exchange would allow underwriters to form syndicates to reinsure and insure unusual or very large exposures.