INSURANCE

Risk Exchange Plan OKd: A program to help insurers reduce their catastrophe-related risks by allowing them to exchange portions of those risks with other insurers has been approved by the New York Insurance Department. Catastrophe Risk Exchange Inc., to be known as Catex, expects to be based in New York City and begin operations by Dec. 1. The exchange is one of several ideas being developed to help insurance companies reduce their exposure to huge losses from catastrophes. Insurers have grown increasingly reluctant to write insurance in catastrophe-prone areas following huge losses on the East Coast from Hurricane Andrew in 1992 and the California’s Northridge earthquake in early 1994.