NEW YORK--New York Gov. David Paterson last night confirmed that the state is seriously considering resurrection of the long-defunct New York Insurance Exchange as part of its financial services modernization campaign.
The exchange debuted in 1980 as a syndicated, subscription-based market modeled after Lloyd's of London, to write both specialized risks as well as reinsurance. It folded seven years later, the victim of a softening market and poor underwriting, among other problems, critics said.
However, given the new dynamics in the financial marketplace nearly 30 years later, it might be time to reestablish the exchange to create new capacity for hard-to-place risks, as well as bolster New York's position as a dominant player in the insurance world, Gov. Paterson noted in his introductory speech at a dinner here hosted by Lloyd's.
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