Wrynn On NY Insurance Exchange

At Tuesday’s Association of Professional Insurance Women (APIW) luncheon in New York City we were privileged to hear James Wrynn, the New York Superintendent of Insurance give us his 2010 outlook for the Big Apple’s insurance marketplace. For those of you who haven’t heard, a major piece of the puzzle is the revival of the New York Insurance Exchange (NYIE). A few weeks ago, Superintendent Wrynn spoke of plans for the NYIE across the pond before several hundred London market executives. Check out Reinsurance Girl’s blog for a recap of the frisson in the crowd at that event. This time, with home advantage Superintendent Wrynn again spoke enthusiastically about the plan to enhance New York’s image as a world insurance center. He drew comparisons between the NYIE and the Lloyd’s market by saying the aim is to recreate a “Lloyd’s of London in New York,† albeit a smaller version. He paid tribute to Lloyd’s as “the most impressive market on the face of the earth† and noted that Lloyd’s market experts are advising on New York’s plan. Wrynn said he envisages the NYIE having similar attributes to the London platform in terms of flexibility of regulation and efficient use of capital. Other important components will be an advanced technology platform, standardized forms, contract certainty and expeditious claims handling. Types of risks the NYIE will handle include climate change, nanotechnology and cyber security. The exchange will also provide a point of entry for certain types of reinsurance business in the U.S. written on an excess and surplus lines basis, something that Lloyd’s does not provide, he said. Wrynn stressed that this should be an industry-driven initiative. Apparently the response so far has been positive with 75 insurance industry executives including 50 chief executive officers agreeing to participate in the department’s working groups. As we’ve noted before, this is not the first time the idea of a NY-based insurance exchange has been raised. Former New York Insurance Superintendent Eric Dinallo sought input from the industry on this in 2009 after first suggesting the move in 2008. That attempt failed, but the enabling legislation is still on the books. For more on this story check out a February 23 Business Insurance article by Zack Phillips.

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