Insurers would have to pay more than 90 percent of the average annual loss from terrorism under the latest version of the Terrorism Risk Insurance Act, according to a modeling firm's analysis.
The study by Newark, Calif.-based Risk Management Solutions reported that while the act provides solvency protection in extreme events, it is not an insurance industry subsidy.
Based on the new TRIA terms, RMS found, more than 90 percent of the RMS-modeled average annual loss would be retained by the industry.
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