Gallagher Re and the New York Mercantile Exchange today announced they have reached an agreement allowing NYMEX to list future contracts for real-time electronic trading of property damage risk exposures, including hurricane risk.
The trading of the Property Damage Risk contracts is subject to regulatory approval by the Commodity Futures Trading Commission, the two organizations said, noting that this marks the first time insurance and reinsurance risk will be actively traded on a real-time basis through an exchange offering clearing house facilities.
It is intended that the contracts will create a liquid market environment for the trading of property damage risk and facilitate the introduction of new capacity into the market, Gallagher Re and NYMEX said.
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