TRIA Impact Weighed

Two industry analyses on the potential industry impact of the Terrorism Risk Insurance Act extension warn insurers that they need to reassess their exposure strategies and that TRIA ramifications could include a capacity shortage in some areas.

Reports by AIR Worldwide Corporation and insurance broker Marsh, a subsidiary of Marsh & McLennan Companies, detail the changes made under the TRIA extension bill, which increased the certification trigger for insurers and decreased the percentage of the federal government’s share of loss over the next two years before the act sunsets.