2022 Report on the Effectiveness of the Terrorism Risk Insurance Program, 18473-18474 [2022-06681]

Download as PDF Federal Register / Vol. 87, No. 61 / Wednesday, March 30, 2022 / Notices The following paragraph applies to all of the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. Request for Comments: Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. Comments will be of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information has practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Approved: March 23, 2022. Martha R. Brinson, Tax Analyst. [FR Doc. 2022–06624 Filed 3–29–22; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY 2022 Report on the Effectiveness of the Terrorism Risk Insurance Program Departmental Offices, Department of the Treasury. ACTION: Request for comment. AGENCY: khammond on DSKJM1Z7X2PROD with NOTICES VerDate Sep<11>2014 17:14 Mar 29, 2022 Jkt 256001 Submit comments on or before May 16, 2022. DATES: Submit comments electronically through the Federal eRulemaking Portal at http:// www.regulations.gov, in accordance with the instructions on that site, or by mail to the Federal Insurance Office, Attn: Richard Ifft, Room 1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 20220. Because postal mail may be subject to processing delays, it is recommended that comments be submitted electronically. If submitting comments by mail, please submit an original version with two copies. Comments concerning the 2022 report on the effectiveness of the Terrorism Risk Insurance Program should be captioned with ‘‘2022 TRIP Effectiveness Report.’’ In general, Treasury will post all comments to www.regulations.gov without change, including any business or personal information provided such as names, addresses, email addresses, or telephone numbers. All comments, including attachments and other supporting materials, are part of the public record and subject to public disclosure. You should submit only information that you wish to make available publicly. Where appropriate, a comment should include a short Executive Summary (no more than five single-spaced pages). Additional Instructions. Responses should also include: (1) The data or rationale, including examples, supporting any opinions or conclusions; and (2) any specific legislative, administrative, or regulatory proposals for carrying out recommended approaches or options. ADDRESSES: FOR FURTHER INFORMATION CONTACT: The Terrorism Risk Insurance Act of 2002, as amended (TRIA), established the Terrorism Risk Insurance Program (TRIP or Program). TRIA requires the Secretary of the Treasury (Secretary) to submit a report to Congress by June 30, 2022 concerning, in general, the overall effectiveness of TRIP. To assist the Secretary in formulating the report, the Federal Insurance Office (FIO) within the Department of the Treasury (Treasury) is seeking comments from the insurance sector and other stakeholders on the statutory factors to be analyzed in the report, as well as feedback on SUMMARY: other issues relating to the effectiveness of TRIP. Richard Ifft, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, (202) 622–2922, Sherry Rowlett, Program Analyst, Federal Insurance Office, (202) 622– 1890, Jeremiah Pam, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, (202) 622–7009, or Saurav Banerjee, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, (202) 622–5330. Persons who have difficulty hearing or speaking may access these numbers via TTY by calling the toll-free Federal Relay Service at (800) 877–8339. SUPPLEMENTARY INFORMATION: PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 18473 I. Background TRIA 1 requires participating insurers to make insurance available for losses resulting from acts of terrorism and provides a federal government backstop for the insurers’ resulting financial exposure. TRIA established TRIP within Treasury, and TRIP is administered by the Secretary with the assistance of FIO. TRIA Section 104(h)(2) requires the Secretary to periodically prepare and submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on, among other things, the impact and effectiveness of TRIP (Effectiveness Report). TRIA was reauthorized in December 2019 with an additional requirement that Treasury’s Effectiveness Reports analyze the availability and affordability of terrorism risk insurance, including specifically for houses of worship. The Effectiveness Report that is to be submitted by June 30, 2022 will include an analysis of information that is being collected by Treasury through the 2022 TRIP Data Call,2 as well as data that Treasury collected in prior TRIP Data Calls. Treasury’s data calls are conducted to obtain information to facilitate Treasury’s analysis of the effectiveness of TRIP and the competitiveness of small insurers in the terrorism risk insurance marketplace,3 as well as to assist Treasury more generally in the administration of TRIP. II. Solicitation for Comments Treasury seeks comments on each of the following factors, which Treasury is required under TRIA Section 104(h)(2) to consider in the Effectiveness Report: 1. The overall effectiveness of TRIP; 2. The availability and affordability of terrorism risk insurance, including specifically for places of worship; 3. Any changes or trends relating to the data Treasury collects in its annual TRIP Data Calls, and the implications of such observations with regard to the effectiveness of TRIP; 4. Whether any aspects of TRIP have the effect of discouraging or impeding insurers from providing one or more lines of commercial property and casualty insurance coverage or coverage for acts of terrorism; and 1 Public Law 107–297, 116 Stat. 2322, codified at 15 U.S.C. 6701, note. Because the provisions of TRIA (as amended) appear in a note, instead of particular sections, of the United States Code, the provisions of TRIA are identified by the sections of the law. 2 Terrorism Risk Insurance Program 2022 Data Call, 86 FR 64600 (November 18, 2021) (identifying proposed changes to 2022 TRIP Data Call). 3 TRIA section 108(h). E:\FR\FM\30MRN1.SGM 30MRN1 18474 Federal Register / Vol. 87, No. 61 / Wednesday, March 30, 2022 / Notices 5. Any impact of TRIP on workers’ compensation insurers in particular. This request for comment will provide stakeholders the opportunity to provide qualitative feedback and analysis that may not be otherwise observable through the results of the TRIP Data Calls. Information and views of stakeholders on the factors listed above will assist Treasury in the formulation of the Effectiveness Report and provide meaningful opportunity for stakeholder engagement. In addition, and more generally, such public input may assist the Secretary in the administration of TRIP. In addition to seeking comments on the above factors outlined in Section 104(h)(2) of TRIA, Treasury understands that other issues and factors in the insurance market relating to terrorism risk insurance, in addition to those factors specified in TRIA, could have an impact on the effectiveness of the Program. Treasury accordingly also seeks comments on the following topics: khammond on DSKJM1Z7X2PROD with NOTICES General Questions 1. Whether any lines of insurance or coverages within certain lines of insurance currently subject to the Program no longer require the support of TRIP to ensure the availability and affordability of terrorism risk insurance; 2. Whether any lines of insurance or coverages within certain lines of insurance currently not subject to the Program should be included within TRIP to promote the availability and affordability of terrorism risk insurance; 3. Whether, and in what fashion, insurance market changes associated with the impact of the COVID–19 pandemic have also affected the market for terrorism risk insurance; 4. The availability of terrorism risk insurance coverage for losses arising from nuclear, biological, chemical, or radiological (NBCR) exposures, and the availability of reinsurance or capital markets support for such terrorism risk insurance; Cyber-Related Questions 5. The current state of the cyber insurance market, including the scope of coverage available, the availability and affordability of such coverage, and the effect of ransomware-related losses on the market; 6. Terrorism risk insurance issues presented by cyber-related losses, and the impact of TRIP in connection with such exposures, including views on cyber-related terrorism losses that are included within TRIP and those losses outside of TRIP; 7. Any potential changes to TRIA or TRIP that would encourage the take up VerDate Sep<11>2014 17:14 Mar 29, 2022 Jkt 256001 of insurance for cyber-related losses arising from acts of terrorism as defined under TRIA, including but not limited to the modification of the lines of insurance covered by TRIP and revisions to the current sharing mechanisms for cyber-related losses; 8. The availability of reinsurance or capital markets support for cyber-related losses arising from acts of terrorism as defined under TRIA; Other Questions 9. The manner in which captive insurers access TRIP, including the extent to which coverage is provided on a standalone versus embedded basis, or for NBCR risks only, and the reasons behind such choices; 10. The current status of terrorism risk modeling capabilities, and the use of those techniques in the placement of terrorism risk insurance; 11. Given the increasing availability of more granular information than state or metropolitan level information (such as ZIP code level or geocoded information), please provide views on how FIO could leverage such information to further augment its analysis of the terrorism risk insurance market and TRIP, particularly since the immediate physical impact of individual terrorism-related events may be localized; and 12. Any other issues relating to TRIP, terrorism risk insurance, or reinsurance that may be relevant to FIO’s assessment of the effectiveness of TRIP in the report. Steven E. Seitz, Director, Federal Insurance Office. [FR Doc. 2022–06681 Filed 3–29–22; 8:45 am] BILLING CODE 4810–AK–P DEPARTMENT OF THE TREASURY Agency Information Collection Activities; Proposed Collection; Comment Request; State Small Business Credit Initiative Departmental Offices, Department of the Treasury. ACTION: Notice. AGENCY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other federal agencies to comment on the proposed information collections listed below, in accordance with the Paperwork Reduction Act of 1995. DATES: Written comments must be received on or before May 31, 2022. ADDRESSES: Send comments regarding the burden estimate, or any other aspect SUMMARY: PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 of the information collection, including suggestions for reducing the burden, by the following method: • Federal E-rulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. Refer to Docket Number TREAS–DO– 2022–0009 and the specific Office of Management and Budget (OMB) control number 1505–0227. FOR FURTHER INFORMATION CONTACT: Jeffrey Stout, State Small Business Credit Initiative (SSBCI), at (866) 220– 9050 or ssbci_information@treasury.gov. Further information may be obtained from the SSBCI website, https:// home.treasury.gov/policy-issues/smallbusiness-programs/state-small-businesscredit-initiative-ssbci, or by contacting ssbci_information@treasury.gov. SUPPLEMENTARY INFORMATION: Title: State Small Business Credit Initiative Information Collection Activities. OMB Control Number: 1505–0227. Type of Review: Revision of currently approved information collection activities. Description: This information collection captures information related to the State Small Business Credit Initiative (SSBCI). The American Rescue Plan Act of 2021 (ARPA) reauthorized and amended the Small Business Jobs Act of 2010 (SBJA) to provide $10 billion to fund the SSBCI as a response to the economic effects of the COVID– 19 pandemic.1 SSBCI is a federal program administered by the U.S. Department of the Treasury (Treasury) that was created to strengthen the programs of eligible jurisdictions (i.e., states, the District of Columbia, territories, Tribal governments) that support private financing for small businesses. • Capital Program Application. In order to determine the eligibility of jurisdictions to receive SSBCI funds for capital programs, Treasury must collect the following types of information in an application: Points of contact for the eligible jurisdiction and those administering the program; how the eligible jurisdiction plans to use the funds to provide access to capital for businesses in underserved communities; details on the eligible jurisdiction’s proposed capital programs; how the proposed capital programs comply with the SSBCI statute, regulations, and guidance; and the eligible jurisdiction’s compliance and oversight capabilities. Treasury will collect application 1 ARPA, Public Law 117–2, sec. 3301, codified at 12 U.S.C. 5701 et seq. SSBCI was originally established in Title III of the Small Business Jobs Act of 2010. E:\FR\FM\30MRN1.SGM 30MRN1

Agencies

[Federal Register Volume 87, Number 61 (Wednesday, March 30, 2022)]
[Notices]
[Pages 18473-18474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06681]


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DEPARTMENT OF THE TREASURY


2022 Report on the Effectiveness of the Terrorism Risk Insurance 
Program

AGENCY: Departmental Offices, Department of the Treasury.

ACTION: Request for comment.

-----------------------------------------------------------------------

SUMMARY: The Terrorism Risk Insurance Act of 2002, as amended (TRIA), 
established the Terrorism Risk Insurance Program (TRIP or Program). 
TRIA requires the Secretary of the Treasury (Secretary) to submit a 
report to Congress by June 30, 2022 concerning, in general, the overall 
effectiveness of TRIP. To assist the Secretary in formulating the 
report, the Federal Insurance Office (FIO) within the Department of the 
Treasury (Treasury) is seeking comments from the insurance sector and 
other stakeholders on the statutory factors to be analyzed in the 
report, as well as feedback on other issues relating to the 
effectiveness of TRIP.

DATES: Submit comments on or before May 16, 2022.

ADDRESSES: Submit comments electronically through the Federal 
eRulemaking Portal at http://www.regulations.gov, in accordance with 
the instructions on that site, or by mail to the Federal Insurance 
Office, Attn: Richard Ifft, Room 1410 MT, Department of the Treasury, 
1500 Pennsylvania Avenue NW, Washington, DC 20220. Because postal mail 
may be subject to processing delays, it is recommended that comments be 
submitted electronically. If submitting comments by mail, please submit 
an original version with two copies. Comments concerning the 2022 
report on the effectiveness of the Terrorism Risk Insurance Program 
should be captioned with ``2022 TRIP Effectiveness Report.'' In 
general, Treasury will post all comments to www.regulations.gov without 
change, including any business or personal information provided such as 
names, addresses, email addresses, or telephone numbers. All comments, 
including attachments and other supporting materials, are part of the 
public record and subject to public disclosure. You should submit only 
information that you wish to make available publicly. Where 
appropriate, a comment should include a short Executive Summary (no 
more than five single-spaced pages).
    Additional Instructions. Responses should also include: (1) The 
data or rationale, including examples, supporting any opinions or 
conclusions; and (2) any specific legislative, administrative, or 
regulatory proposals for carrying out recommended approaches or 
options.

FOR FURTHER INFORMATION CONTACT: Richard Ifft, Senior Insurance 
Regulatory Policy Analyst, Federal Insurance Office, (202) 622-2922, 
Sherry Rowlett, Program Analyst, Federal Insurance Office, (202) 622-
1890, Jeremiah Pam, Senior Insurance Regulatory Policy Analyst, Federal 
Insurance Office, (202) 622-7009, or Saurav Banerjee, Senior Insurance 
Regulatory Policy Analyst, Federal Insurance Office, (202) 622-5330. 
Persons who have difficulty hearing or speaking may access these 
numbers via TTY by calling the toll-free Federal Relay Service at (800) 
877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    TRIA \1\ requires participating insurers to make insurance 
available for losses resulting from acts of terrorism and provides a 
federal government backstop for the insurers' resulting financial 
exposure. TRIA established TRIP within Treasury, and TRIP is 
administered by the Secretary with the assistance of FIO. TRIA Section 
104(h)(2) requires the Secretary to periodically prepare and submit a 
report to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate on, among other things, the impact and 
effectiveness of TRIP (Effectiveness Report). TRIA was reauthorized in 
December 2019 with an additional requirement that Treasury's 
Effectiveness Reports analyze the availability and affordability of 
terrorism risk insurance, including specifically for houses of worship. 
The Effectiveness Report that is to be submitted by June 30, 2022 will 
include an analysis of information that is being collected by Treasury 
through the 2022 TRIP Data Call,\2\ as well as data that Treasury 
collected in prior TRIP Data Calls. Treasury's data calls are conducted 
to obtain information to facilitate Treasury's analysis of the 
effectiveness of TRIP and the competitiveness of small insurers in the 
terrorism risk insurance marketplace,\3\ as well as to assist Treasury 
more generally in the administration of TRIP.
---------------------------------------------------------------------------

    \1\ Public Law 107-297, 116 Stat. 2322, codified at 15 U.S.C. 
6701, note. Because the provisions of TRIA (as amended) appear in a 
note, instead of particular sections, of the United States Code, the 
provisions of TRIA are identified by the sections of the law.
    \2\ Terrorism Risk Insurance Program 2022 Data Call, 86 FR 64600 
(November 18, 2021) (identifying proposed changes to 2022 TRIP Data 
Call).
    \3\ TRIA section 108(h).
---------------------------------------------------------------------------

II. Solicitation for Comments

    Treasury seeks comments on each of the following factors, which 
Treasury is required under TRIA Section 104(h)(2) to consider in the 
Effectiveness Report:
    1. The overall effectiveness of TRIP;
    2. The availability and affordability of terrorism risk insurance, 
including specifically for places of worship;
    3. Any changes or trends relating to the data Treasury collects in 
its annual TRIP Data Calls, and the implications of such observations 
with regard to the effectiveness of TRIP;
    4. Whether any aspects of TRIP have the effect of discouraging or 
impeding insurers from providing one or more lines of commercial 
property and casualty insurance coverage or coverage for acts of 
terrorism; and

[[Page 18474]]

    5. Any impact of TRIP on workers' compensation insurers in 
particular.
    This request for comment will provide stakeholders the opportunity 
to provide qualitative feedback and analysis that may not be otherwise 
observable through the results of the TRIP Data Calls. Information and 
views of stakeholders on the factors listed above will assist Treasury 
in the formulation of the Effectiveness Report and provide meaningful 
opportunity for stakeholder engagement. In addition, and more 
generally, such public input may assist the Secretary in the 
administration of TRIP.
    In addition to seeking comments on the above factors outlined in 
Section 104(h)(2) of TRIA, Treasury understands that other issues and 
factors in the insurance market relating to terrorism risk insurance, 
in addition to those factors specified in TRIA, could have an impact on 
the effectiveness of the Program. Treasury accordingly also seeks 
comments on the following topics:

General Questions

    1. Whether any lines of insurance or coverages within certain lines 
of insurance currently subject to the Program no longer require the 
support of TRIP to ensure the availability and affordability of 
terrorism risk insurance;
    2. Whether any lines of insurance or coverages within certain lines 
of insurance currently not subject to the Program should be included 
within TRIP to promote the availability and affordability of terrorism 
risk insurance;
    3. Whether, and in what fashion, insurance market changes 
associated with the impact of the COVID-19 pandemic have also affected 
the market for terrorism risk insurance;
    4. The availability of terrorism risk insurance coverage for losses 
arising from nuclear, biological, chemical, or radiological (NBCR) 
exposures, and the availability of reinsurance or capital markets 
support for such terrorism risk insurance;

Cyber-Related Questions

    5. The current state of the cyber insurance market, including the 
scope of coverage available, the availability and affordability of such 
coverage, and the effect of ransomware-related losses on the market;
    6. Terrorism risk insurance issues presented by cyber-related 
losses, and the impact of TRIP in connection with such exposures, 
including views on cyber-related terrorism losses that are included 
within TRIP and those losses outside of TRIP;
    7. Any potential changes to TRIA or TRIP that would encourage the 
take up of insurance for cyber-related losses arising from acts of 
terrorism as defined under TRIA, including but not limited to the 
modification of the lines of insurance covered by TRIP and revisions to 
the current sharing mechanisms for cyber-related losses;
    8. The availability of reinsurance or capital markets support for 
cyber-related losses arising from acts of terrorism as defined under 
TRIA;

Other Questions

    9. The manner in which captive insurers access TRIP, including the 
extent to which coverage is provided on a standalone versus embedded 
basis, or for NBCR risks only, and the reasons behind such choices;
    10. The current status of terrorism risk modeling capabilities, and 
the use of those techniques in the placement of terrorism risk 
insurance;
    11. Given the increasing availability of more granular information 
than state or metropolitan level information (such as ZIP code level or 
geocoded information), please provide views on how FIO could leverage 
such information to further augment its analysis of the terrorism risk 
insurance market and TRIP, particularly since the immediate physical 
impact of individual terrorism-related events may be localized; and
    12. Any other issues relating to TRIP, terrorism risk insurance, or 
reinsurance that may be relevant to FIO's assessment of the 
effectiveness of TRIP in the report.

Steven E. Seitz,
Director, Federal Insurance Office.
[FR Doc. 2022-06681 Filed 3-29-22; 8:45 am]
BILLING CODE 4810-AK-P