Insurers need to reassess their exposure strategies in the wake of the Terrorism Risk Insurance Act's two-year extension in a market that could face a capacity shortage in some areas, recent industry analyses warn.
Reports by modeling firm AIR Worldwide Corp., insurance broker Marsh and rating agency Moody's detail changes made under the TRIA extension measure, which increased the coverage trigger and decreased the percentage of the federal government's share of loss before the act sunsets on Dec. 31, 2007.
AIR, the Boston-based subsidiary of the Insurance Services Office, used its terrorism models to give a loss example of a sample company with $2 billion in total annual premium. The company was assumed to have a high concentration of exposure in major cities.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
