Fitch Ratings is warning that failure to renew the Terrorism Risk Insurance Act could reduce product capacity in larger metropolitan areas, raising premium rates.
It could also, in the short term, leave individual insurers with commercial property and workers compensation exposure from a potential event above prior risk tolerance levels, Fitch Ratings analysts say.
Fitch's statement came on the heels of a Marsh & McLennan Companies report released last week raising concerns that Congress may not fully address the renewal of the Terrorism Risk Insurance Act before the scheduled expiration of the law at the end of 2014.
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