Insurance rating agency A.M. Best Co. says 34 rating units failed a stress test to assess capitalization sans the federal terrorism backstop.
If the Terrorism Risk Insurance Program Reauthorization Act is not reauthorized, the agency has determined about 4 percent of an overall total of 889 rating units are too reliant on TRIPRA, and "materially exposed to terrorism risk," says Michael Russo, senior analyst and author of a briefing.
Narrowing the rating units down to the 226 that disclosed a material terrorism exposure, about 15 percent failed the stress test.
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