New York Insurance Exchange is still news; will it be alternative?

Share

So the New York Insurance Exchange is back in the news (via the NY Times) again this week with Gov. David A. Paterson announcing plans for a Lloyd’s of London style insurance and reinsurance exchange. Aiming to specialise in complex risks such as hurricane, other catastrophe, terror risks and hard to place liabilities the thought is that the exchange could work in a syndicate type fashion as Lloyd’s does.

There seems little point reproducing Lloyd’s across the pond though. While that might seem like a good idea for New York it isn’t going to help the market so much as capacity and interest from participants is finite and one exchange would end up stealing from the other to survive in future years.

What would work is creating a center of alternative risk transfer excellence which allows hedge funds and investors to get their fill of risks in a regulated insurance exchange set up specifically to create capital market capacity. Exchange based catastrophe bonds would be an interesting idea. Maybe that’s the plan, it isn’t clear yet, we’ll bring you more as this unfolds.

Previous Artemis coverage on the New York Insurance Exchange can be found here and here.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.

Read previous post:
Commentary points to busy 2010 for cat bonds

As I've been saying for some time now, 2010 could be a busy year for the cat bond market. Now...

Close