According to news reports, NYSID Superintendent James Wrynn stated that he expects to have a working committee formed within the next two weeks and that revival of the exchange is “something [the NYSID is] working on daily.” The NYSID hopes to have the Exchange reestablished as soon as possible. It is anticipated that the Exchange would operate like Lloyd’s of London for complicated, large or risky insurance contracts.
The Exchange was originally created in 1979 in response to concern that the significant growth of the insurance industry during the mid-1970s would result in premium dollars flowing to international markets having a greater capacity to write high-risk insurance. After a period of rapid initial growth, the Exchange faltered when market conditions changed dramatically in the late 1980s. The Exchange was ultimately liquidated in 1996. New York Insurance Law, however, still contains the authorizing statutes for the Exchange.
Click here to view Governor Paterson’s official press release.