Lloyd’s model is not even working for them anymore… all of the large London syndicates have opened domestic US operations and London has a very limited appetite for the heavy, hairy, and hard to place risks…
I don’t see the need or the usefulness of such a marketplace.
And most wholesale brokers like myself would rather be working directly with the underwriter, rather than going through a Lloyd’s Broker.
…and not all of us live, or even want to live in NYC.
I particularly like the idea of inviting hedge fund managers and private equity firms in as players. They exhibited such sound judgement over the last decade!
Failure is not necessarily so. There is money to be made when insuring unusual, difficult or complicated risks. What one needs is capable lead underwriters and access to secure sharing and/or reinsurance. This time around we have a governmental need for the ensuing commerce and profits. Consequently there is strong support from the city.
I remember the Betty Grable’s legs AIG ad. Promoting an innovative and aggressive underwriting facility for the unique and unusual risk in the United States could turn out to be a winner for all concerned. The insurance marketplace is gradually coming off the soft phase now but the tighter phase can’t be far off and it should coincide with the early stages of economic recovery. This just might be the right time to get the Exchange off the ground.
I placed a fair amount of business in the former exchange and two major problems still exist. First is that the American Insurance industry thinks differently than London. Everyone wants to be a “LEADER” in every class and line. “Follower’ grates on our national pride. Secondly, the quality of the underwriters was second class in many cases.
If you read any other articles it’s more about the fact that Wrynn and Patterson are trying to create jobs in NY. They figure the exchange will help replace loss tax dollars from the financial crisis and will please the votes in the nothern part of the state that are struggling to find work.
The hub will be in NYC, but the back office will be albany.
These humps are thinking one thing: gaining votes and gaining tax revenues. They know nothing of soft markets and over capacity.
This pretty much sums it up — the market is soft, London is having problems competing in the US thus why so many syndicates are buying up shell carriers here and opening up shop in traditional US style vs. trying to compete from London…why would ANYONE place business in this NY syndicate?
And as to the comment of “hard to place” risks — that’s a death spiral unless you get underwriters who know what they are doing and underwrite to the losses (or potential) losses vs. just trying to compete in a soft market.
BAD BAD BAD idea!!!!! Politicians are bad businessmen — all they know is campaigning…they know little else.
I really don’t think this is a good time for this. It may create jobs, but do we really need it and with this soft market, can it make a profit for the state? I don’t think so.
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Lloyd’s model is not even working for them anymore… all of the large London syndicates have opened domestic US operations and London has a very limited appetite for the heavy, hairy, and hard to place risks…
I don’t see the need or the usefulness of such a marketplace.
And most wholesale brokers like myself would rather be working directly with the underwriter, rather than going through a Lloyd’s Broker.
…and not all of us live, or even want to live in NYC.
I particularly like the idea of inviting hedge fund managers and private equity firms in as players. They exhibited such sound judgement over the last decade!
Failure is not necessarily so. There is money to be made when insuring unusual, difficult or complicated risks. What one needs is capable lead underwriters and access to secure sharing and/or reinsurance. This time around we have a governmental need for the ensuing commerce and profits. Consequently there is strong support from the city.
I remember the Betty Grable’s legs AIG ad. Promoting an innovative and aggressive underwriting facility for the unique and unusual risk in the United States could turn out to be a winner for all concerned. The insurance marketplace is gradually coming off the soft phase now but the tighter phase can’t be far off and it should coincide with the early stages of economic recovery. This just might be the right time to get the Exchange off the ground.
I placed a fair amount of business in the former exchange and two major problems still exist. First is that the American Insurance industry thinks differently than London. Everyone wants to be a “LEADER” in every class and line. “Follower’ grates on our national pride. Secondly, the quality of the underwriters was second class in many cases.
If you read any other articles it’s more about the fact that Wrynn and Patterson are trying to create jobs in NY. They figure the exchange will help replace loss tax dollars from the financial crisis and will please the votes in the nothern part of the state that are struggling to find work.
The hub will be in NYC, but the back office will be albany.
These humps are thinking one thing: gaining votes and gaining tax revenues. They know nothing of soft markets and over capacity.
This pretty much sums it up — the market is soft, London is having problems competing in the US thus why so many syndicates are buying up shell carriers here and opening up shop in traditional US style vs. trying to compete from London…why would ANYONE place business in this NY syndicate?
And as to the comment of “hard to place” risks — that’s a death spiral unless you get underwriters who know what they are doing and underwrite to the losses (or potential) losses vs. just trying to compete in a soft market.
BAD BAD BAD idea!!!!! Politicians are bad businessmen — all they know is campaigning…they know little else.
I really don’t think this is a good time for this. It may create jobs, but do we really need it and with this soft market, can it make a profit for the state? I don’t think so.