At the Insider Scope conference in London on February 10, 2010, New York Insurance Department (“NYID”) Superintendent James Wrynn announced that the NYID is targeting September 2010 for the publication of its action plan for the launch of the reconstituted New York Insurance Exchange (the “Exchange”). Superintendent Wrynn stated that New York is “using Lloyd’s as a blueprint” with the goal of having “as technologically advanced a platform as possible” which would allow it to offer coverage for new types of risks. He expects the Exchange to have more internal oversight with contact certainty and claims payment rules. This also includes using standardized policy forms to address common issues such as the definition of “occurrence.” Other points discussed by Superintendent Wrynn included the need to determine proper capitalization ratios so that the Exchange does not become insolvent like its predecessor. He also reiterated his previous statements that the NYID wants “to develop a platform that compliments Lloyd’s and not just something that it is in competition with Lloyd’s.” To this end the NYID has been co-ordinating its approach with Lloyd’s, which is represented on the Exchange working groups established by the NYID.
The Exchange working groups are due to report back to the NYID on their discussions in April of this year and are due to make their recommendations to the NYID by June. The NYID intends to announce its action plan in September 2010.
We will continue to monitor these developments and provide updates at InsureReinsure.com.
