Fitch Predicts Severe Capacity Shortage if TRIA Is Not Renewed

Failure to renew the Terrorism Risk Insurance Act could induce commercial insurers to retreat from larger metropolitan areas, reducing availability of coverage and raising premium rates, according to Fitch Ratings.According to the agency, the lack of terrorism reinsurance coverage would leave individual insurers in the short term with commercial property and workers’ compensation exposure from a potential event above prior risk tolerance levels.Currently, the U.S. House of Representatives is considering whether to extend the legislation beyond Dec. 31, 2013, when it is set to expire. &ld...