Plans to set up a New York “Lloyd’s” get insurer support
New York Insurance Superintendent Eric Dinallo said he will renew his push to revive the defunct New York Insurance Exchange to compete with Bermuda as an insurance centre, Reuters reports.
"We could compete for a lot of that business that goes to Bermuda," said Dinallo. "It would be a great alternative for reinsurance and insurance," he added.
The original New York exchange for brokering and underwriting was founded in 1980, but closed its doors after the industry was hit by a severe period of losses. New York laws permitting the exchange still exist.
It could be similar to the Lloyds of London model, with companies set up in a central location, and brokers able to shop for various types insurance.
Dinallo said some major insurance companies had pledged support, but would not identify them.
Dinallo has formed a working group to see how the exchange could operate, and said technology would play a large role.
Dinallo said the exchange could help resolve complaints about U.S. state-by-state regulations because members could do business across the nation through the exchange, bypassing the need to apply to each regulator individually.
