NEW YORK—Regulators want to have a revamped version of the New York Insurance Exchange up running next year, a New York State Insurance Department official said Thursday.

The exchange would be a Lloyd’s of London-style marketplace in which buyers could purchase insurance and reinsurance and capital providers could form syndicates.

New York Gov. David Paterson has made the exchange one of the department’s top priorities, First Deputy Superintendent Kermitt Brooks said at a Thursday meeting sponsored by brokerage E.G. Bowman Co. Inc.

“We want it and we’d like to see it occur sometime in 2010,” Mr. Brooks said. “This is an ambitious goal that is one that we really want to work towards.”

Department officials and observers have said the September confirmation of James J. Wrynn as insurance superintendent has revived the idea first proposed last year by his predecessor Eric Dinallo.

The original exchange operated for seven years but closed in 1987 due to inadequate capital, soft market conditions, and other factors. The New York state law allowing the exchange remains on the books.

Department officials said they believe today’s economic and market conditions are more conducive to the exchange. Mr. Brooks said securing some sort of tax credit for exchange participants is crucial.

“We believe that the key to the success of the insurance exchange is to obtain some kind of tax relief to encourage investment to come to our jurisdiction,” Mr. Brooks said. “So we’re working at the federal and state level to make sure we’re able to offer those types of incentives.”

He said the department is forming an advisory committee of industry and government leaders to investigate the issue. He also said it is too early to say whether the exchange would be an electronic platform, a bricks-and-mortar operation, or some other structure, but that the department is open-minded about how the operation would work.

“The first thing we want to do is attract interest, secure the tax credit and then after that, the structure will kind of fall into place,” he said. “Stay tuned.”