Search
 

Domestic Reinsurance

New York State plans to revive its insurance exchange, but some question whether the additional capacity is needed.

By Dave Lindorff | Updated on March 01, 2010

Some 75% of Fortune 500 companies have captive insurance companies, but a key challenge has always been efficiently reinsuring captives’ risks, with the options mostly limited to Lloyd’s of London or reinsurers based in Bermuda. Now the New York State Insurance Department, in an initiative promoted by Gov. David Paterson, hopes to change that by resurrecting a commercial insurance exchange first launched in the 1980s. That initial attempt failed because it didn’t attract enough capital.

“This isn’t a done deal yet,” admits Michael Moriarty, deputy superintendent for property and casualty markets at the New York Insurance Department (NYID). “But we’ve been talking with hedge funds and private investment funds, and they like the idea of having a way to invest in insurance risk, which is not correlated with capital markets.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.