Comments in Aid of Analyses of the Terrorism Risk Insurance Program, 18374-18376 [2023-06423]

Download as PDF 18374 Federal Register / Vol. 88, No. 59 / Tuesday, March 28, 2023 / Notices Estimated Number of Respondents: 56. Estimated Time per Respondent: Average 393.5 hours per state. Estimated Total Annual Burden Hours: 22,036. Authority: 44 U.S.C. 3501 et seq. Melody Braswell, Treasury PRA Clearance Officer. [FR Doc. 2023–06389 Filed 3–27–23; 8:45 am] BILLING CODE 4810–AS–P DEPARTMENT OF THE TREASURY Agency Information Collection Activities; Submission for OMB Review; Comment Request; Departmental Offices Information Collection Request Departmental Offices, U.S. Department of the Treasury. ACTION: Notice. AGENCY: The Department of the Treasury, as part of its continuing effort to reduce paperwork burdens, invites the general public and other Federal agencies to comment on revisions of an information collection that are proposed for approval by the Office of Management and Budget. The Office of International Affairs within the Department of the Treasury is soliciting comments concerning the revisions of the Treasury International Capital (TIC) Forms BC, BL–1, BL–2, BQ–1, BQ–2, and BQ–3 (called the ‘‘TIC B forms’’). DATES: Comments should be received on or before April 27, 2023 to be assured of consideration. ADDRESSES: Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to www.reginfo.gov/public/do/ PRAMain. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. FOR FURTHER INFORMATION CONTACT: Dwight Wolkow, International Portfolio Investment Data Systems, Department of the Treasury, 202–622–1276. Copies of the proposed TIC B Forms and instructions are available on the Treasury’s TIC Forms web page, https:// home.treasury.gov/data/treasuryinternational-capital-tic-system-homepage/tic-forms-instructions. Requests for additional information should be directed to Mr. Wolkow. SUPPLEMENTARY INFORMATION: lotter on DSK11XQN23PROD with NOTICES1 SUMMARY: Departmental Offices (DO) Titles: Treasury International Capital (TIC) Form BC ‘‘Monthly Report of U.S. VerDate Sep<11>2014 16:59 Mar 27, 2023 Jkt 259001 Dollar Claims of Financial Institutions on Foreign Residents;’’ TIC BL–1 ‘‘Monthly Report of U.S. Dollar Liabilities of Financial Institutions to Foreign Residents;’’ TIC BL–2 ‘‘Monthly Report of Customers’ U.S. Dollar Liabilities to Foreign Residents;’’ TIC BQ–1 ‘‘Quarterly Report of Customers’ U.S. Dollar Claims on Foreign Residents;’’ TIC BQ–2 ‘‘Part 1: Quarterly Report of Foreign Currency Liabilities and Claims of Financial Institutions and of their Domestic Customers’ Foreign Currency Claims with Foreign Residents’’ and ‘‘Part 2: the Report of Customers’ Foreign Currency Liabilities to Foreign Residents;’’ and TIC BQ–3 ‘‘Quarterly Report of Maturities of Selected Liabilities and Claims of Financial Institutions with Foreign Residents.’’ OMB Number: 1505–0016. Abstract: Forms BC, BL–1, BL–2, BQ– 1, BQ–2, BQ–3 are part of the Treasury International Capital (TIC) reporting system, which is required by law (22 U.S.C. 286f; 22 U.S.C. 3103; E.O. 10033; 31 CFR 128) and are designed to collect timely information on international portfolio capital movements. These forms are filed by U.S.-resident financial institutions that are not exempt. On the monthly forms, these organizations report their own claims on (BC), their own liabilities to (BL–1), and their U.S. customers’ liabilities to (BL–2) foreign residents, denominated in U.S. dollars. On the quarterly forms, these organizations report their U.S.-resident customers’ U.S. dollar claims on foreign residents (BQ–1), and their own and their domestic customers’ claims and liabilities with foreign residents, where all claims and liabilities are denominated in foreign currencies (BQ– 2). On the quarterly BQ–3 form, these organizations report the remaining maturities of all their own U.S. dollar and foreign currency liabilities and claims (excluding securities) with foreign residents. This information is necessary for compiling the U.S. balance of payments accounts and the U.S. international investment position, and for use in formulating U.S. international financial and monetary policies. Current Actions: One change is proposed to page 18 of the Instructions for the Treasury International Capital (TIC) Form B Reports. In section I.D.1. ‘‘General Instructions—Accounting Issues—General’’, add the following sentence as the new first sentence of the existing first paragraph: ‘‘These reports should be prepared in accordance with generally accepted accounting principles (GAAP) and these instructions.’’ This additional text clarifies that balances are expected to be PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 reported according to GAAP. Similar text is found in the FFIEC 009 instructions. Type of Review: Revision of a currently approved collection. Affected Public: Business or other forprofit organizations. Forms: BC, BL–1, BL–2, BQ–1, BQ–2, and BQ–3. Estimated Number of Respondents: BC, 320; BL–1, 360; BL–2, 110; BQ–1, 85; BQ–2, 190 and BQ–3, 155. Estimated Average Time per Respondent per Filing: BC, 11.2 hours; BL–1, 7.7 hours; BL–2, 8.9 hours; BQ– 1, 3.8 hours; BQ–2, 7.8 hours; and BQ– 3, 10.5 hours. The average time varies and is estimated to be generally twice as many hours for major data reporters as for other reporters. Estimated Total Annual Burden Hours: BC, 43,170 hours for 12 reports per year; BL–1, 33,440 hours for 12 reports per year; BL–2, 11,760 hours for 12 reports per year; BQ–1, 1,290 hours for 4 reports per year, BQ–2, 5,960 hours for 4 reports per year; and BQ–3, 6,510 hours for 4 reports per year. Authority: 44 U.S.C. 3501 et seq. Melody Braswell, Treasury PRA Clearance Officer. [FR Doc. 2023–06391 Filed 3–27–23; 8:45 am] BILLING CODE 4810–25–P DEPARTMENT OF THE TREASURY Comments in Aid of Analyses of the Terrorism Risk Insurance Program Departmental Offices, U.S. Department of the Treasury. ACTION: Request for comments. AGENCY: The Terrorism Risk Insurance Act of 2002 (TRIA) created the Terrorism Risk Insurance Program (Program) to address disruptions in the market for terrorism risk insurance, to help ensure the continued availability and affordability of commercial property and casualty insurance for terrorism risk, and to allow for the private markets to stabilize and build insurance capacity to absorb any future losses for terrorism events. The Secretary of the Treasury (Secretary) administers the Program, with the assistance of the Federal Insurance Office (FIO). Treasury requests comments from interested parties regarding some of the issues that FIO will be analyzing in connection with its next report related to the participation of small insurers in the Program, including any competitive challenges such insurers face in the terrorism risk insurance marketplace. SUMMARY: E:\FR\FM\28MRN1.SGM 28MRN1 Federal Register / Vol. 88, No. 59 / Tuesday, March 28, 2023 / Notices Submit comments on or before May 12, 2023. ADDRESSES: Submit comments electronically through the Federal eRulemaking Portal: https:// www.regulations.gov, 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 should be captioned with ‘‘2023 TRIA Small Insurer Study Comments.’’ Please include your name, group affiliation, address, email address, and telephone number(s) in your comment. Where appropriate, a comment should include a short Executive Summary (no more than five single-spaced pages). FOR FURTHER INFORMATION CONTACT: Richard Ifft, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, Room 1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 20220, at (202) 622–2922 (not a tollfree number), Sherry Rowlett, Program Analyst, Federal Insurance Office, at (202) 622–1890 (not a toll free number), or Annette Burris, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, at (202) 622–2541 (not a toll free number). 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: lotter on DSK11XQN23PROD with NOTICES1 DATES: I. Background Section 104(h) of TRIA 1 directs the Secretary, beginning in calendar year 2016, to ‘‘require insurers participating in the Program to submit to the Secretary such information regarding insurance coverage for terrorism losses of such insurers as the Secretary considers appropriate to analyze the effectiveness of the Program[.]’’ This information and data includes information regarding: (1) lines of insurance with exposure to such losses; (2) premiums earned on such coverage; (3) geographical location of exposures; (4) pricing of such coverage; (5) the takeup rate for such coverage; (6) the amount of private reinsurance for acts of terrorism purchased; and (7) such other 1 Public Law 107–297, 116 Stat. 2322, codified at 15 U.S.C. 6701, note. As 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. VerDate Sep<11>2014 16:59 Mar 27, 2023 Jkt 259001 matters as the Secretary considers appropriate. In addition, Section 108(h) of TRIA requires the Secretary to conduct, by June 30, 2017 and every other year thereafter, a study of small insurers (to be defined by the Secretary, as has been done under 31 CFR 50.4(z)) participating in the Program to identify any competitive challenges that small insurers face in the terrorism risk insurance marketplace. Section 108(h) also identifies specific matters that Treasury is to analyze in the small insurers study. In addition to the data that Treasury has previously collected and will be collecting in the future, Treasury seeks comments from the public for use in the study that Treasury must conduct concerning the participation of small insurers in the Program. II. Solicitation for Comments on Small Insurer Participation in the Program As discussed above, Treasury will be collecting certain data from small insurers as part of its 2023 TRIP Data Call,2 which Treasury will use (along with data collected by Treasury during prior TRIP Data Calls) in connection with the study. Treasury welcomes comments concerning small insurer participation in the Program generally, and invites responses to the following particular issues specified in Section 108(h) of TRIA: (1) Changes to the market share, premium volume, and policyholder surplus of small insurers relative to large insurers. (2) How the property and casualty insurance market for terrorism risk differs between small and large insurers, and whether such a difference exists within other perils. (3) The impact of the Program’s mandatory availability requirement under Section 103(c) of TRIA on small insurers. (4) The effect of increasing the trigger amount for the Program under Section 103(e)(1)(B) of TRIA for small insurers. (5) The availability and cost of private reinsurance for small insurers. (6) The impact that state workers’ compensation laws have on small insurers and workers’ compensation carriers in the terrorism risk insurance marketplace. In addition, Treasury welcomes qualitative and quantitative comments on the following additional topics that 2 The 2023 TRIP Data Call has commenced. See Terrorism Risk Insurance Program Annual Data Collection, https://home.treasury.gov/policy-issues/ financial-markets-financial-institutions-and-fiscalservice/federal-insurance-office/terrorism-riskinsurance-program/annual-data-collection. PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 18375 may be relevant to the competitiveness of small insurers in the terrorism risk insurance marketplace. (1) Any potential constraints or market effects on the ability of small insurers to provide coverage for nuclear, chemical, biological, and radiological (NBCR) risks. (2) Any risk management strategies and challenges faced by small insurers in maintaining the ability to pay losses associated with insured claims that are not subject to claims for the federal share of compensation (e.g., losses below the Program Trigger, within the insurer deductible, and within the insurer co-pay share). (3) The effects, if any, on small insurer participation in the terrorism risk insurance marketplace of the 2019 reauthorization of the Program until December 31, 2027, under the sharing mechanisms in place as of Calendar Year 2020.3 (4) The role of small insurers in covering cyber-related acts of terrorism under the Program, including any relevant developments in the cyber insurance market. (5) The role of small insurers in covering terrorism risk under the Program for Places of Worship.4 (6) The use of risk modeling techniques and other analytical tools by small insurers to assess their risk exposure to losses within the scope of the Program. Treasury issued its first three studies of small insurers under TRIA in June 2017,5 June 2019,6 and June 2021.7 In those studies, Treasury addressed the statutory issues identified above, with reference to data collected by Treasury in the TRIP Data Calls, as well as other available sources. Treasury requests further comment on these issues from 3 See Terrorism Risk Insurance Program Reauthorization Act of 2019, Public Law 116–94, 133 Stat. 2534. 4 As defined in Treasury’s TRIP Data Calls. See, e.g., Instructions for Terrorism Risk Insurance Program (TRIP) 2023 Data Call Small Insurers at 22, located at https://home.treasury.gov/policy-issues/ financial-markets-financial-institutions-and-fiscalservice/federal-insurance-office/terrorism-riskinsurance-program/annual-data-collection. 5 U.S. Treasury, Study of Small Insurer Competitiveness in the Terrorism Risk Insurance Marketplace (June 2017), https://home.treasury.gov/ system/files/311/Study_of_Small_Insurer_ Competitiveness_in_the_Terrorism_Risk_Insurance_ Marketplace_%28June_2017%29.pdf. 6 U.S. Treasury, Study of Small Insurer Competitiveness in the Terrorism Risk Insurance Marketplace (June 2019), https://home.treasury.gov/ system/files/311/2019_TRIP_SmallInsurer_ Report.pdf. 7 U.S. Treasury, Study of Small Insurer Competitiveness in the Terrorism Risk Insurance Marketplace (June 2021), https://home.treasury.gov/ system/files/311/2021TRIPSmallInsurer ReportJune2021.pdf. E:\FR\FM\28MRN1.SGM 28MRN1 18376 Federal Register / Vol. 88, No. 59 / Tuesday, March 28, 2023 / Notices interested parties, particularly with respect to any issue that an interested party believes may not be fully evident solely by reference to the aggregated data collected by Treasury. Steven E. Seitz, Director, Federal Insurance Office. [FR Doc. 2023–06423 Filed 3–27–23; 8:45 am] lotter on DSK11XQN23PROD with NOTICES1 BILLING CODE 4810–AK–P VerDate Sep<11>2014 16:59 Mar 27, 2023 Jkt 259001 PO 00000 Frm 00085 Fmt 4703 Sfmt 9990 E:\FR\FM\28MRN1.SGM 28MRN1

Agencies

[Federal Register Volume 88, Number 59 (Tuesday, March 28, 2023)]
[Notices]
[Pages 18374-18376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06423]


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DEPARTMENT OF THE TREASURY


Comments in Aid of Analyses of the Terrorism Risk Insurance 
Program

AGENCY: Departmental Offices, U.S. Department of the Treasury.

ACTION: Request for comments.

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

SUMMARY: The Terrorism Risk Insurance Act of 2002 (TRIA) created the 
Terrorism Risk Insurance Program (Program) to address disruptions in 
the market for terrorism risk insurance, to help ensure the continued 
availability and affordability of commercial property and casualty 
insurance for terrorism risk, and to allow for the private markets to 
stabilize and build insurance capacity to absorb any future losses for 
terrorism events. The Secretary of the Treasury (Secretary) administers 
the Program, with the assistance of the Federal Insurance Office (FIO). 
Treasury requests comments from interested parties regarding some of 
the issues that FIO will be analyzing in connection with its next 
report related to the participation of small insurers in the Program, 
including any competitive challenges such insurers face in the 
terrorism risk insurance marketplace.

[[Page 18375]]


DATES: Submit comments on or before May 12, 2023.

ADDRESSES: Submit comments electronically through the Federal 
eRulemaking Portal: https://www.regulations.gov, 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 should be captioned with ``2023 TRIA Small Insurer Study 
Comments.'' Please include your name, group affiliation, address, email 
address, and telephone number(s) in your comment. Where appropriate, a 
comment should include a short Executive Summary (no more than five 
single-spaced pages).

FOR FURTHER INFORMATION CONTACT: Richard Ifft, Senior Insurance 
Regulatory Policy Analyst, Federal Insurance Office, Room 1410 MT, 
Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 
20220, at (202) 622-2922 (not a toll-free number), Sherry Rowlett, 
Program Analyst, Federal Insurance Office, at (202) 622-1890 (not a 
toll free number), or Annette Burris, Senior Insurance Regulatory 
Policy Analyst, Federal Insurance Office, at (202) 622-2541 (not a toll 
free number). 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

    Section 104(h) of TRIA \1\ directs the Secretary, beginning in 
calendar year 2016, to ``require insurers participating in the Program 
to submit to the Secretary such information regarding insurance 
coverage for terrorism losses of such insurers as the Secretary 
considers appropriate to analyze the effectiveness of the Program[.]'' 
This information and data includes information regarding: (1) lines of 
insurance with exposure to such losses; (2) premiums earned on such 
coverage; (3) geographical location of exposures; (4) pricing of such 
coverage; (5) the take-up rate for such coverage; (6) the amount of 
private reinsurance for acts of terrorism purchased; and (7) such other 
matters as the Secretary considers appropriate.
---------------------------------------------------------------------------

    \1\ Public Law 107-297, 116 Stat. 2322, codified at 15 U.S.C. 
6701, note. As 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.
---------------------------------------------------------------------------

    In addition, Section 108(h) of TRIA requires the Secretary to 
conduct, by June 30, 2017 and every other year thereafter, a study of 
small insurers (to be defined by the Secretary, as has been done under 
31 CFR 50.4(z)) participating in the Program to identify any 
competitive challenges that small insurers face in the terrorism risk 
insurance marketplace. Section 108(h) also identifies specific matters 
that Treasury is to analyze in the small insurers study. In addition to 
the data that Treasury has previously collected and will be collecting 
in the future, Treasury seeks comments from the public for use in the 
study that Treasury must conduct concerning the participation of small 
insurers in the Program.

II. Solicitation for Comments on Small Insurer Participation in the 
Program

    As discussed above, Treasury will be collecting certain data from 
small insurers as part of its 2023 TRIP Data Call,\2\ which Treasury 
will use (along with data collected by Treasury during prior TRIP Data 
Calls) in connection with the study. Treasury welcomes comments 
concerning small insurer participation in the Program generally, and 
invites responses to the following particular issues specified in 
Section 108(h) of TRIA:
---------------------------------------------------------------------------

    \2\ The 2023 TRIP Data Call has commenced. See Terrorism Risk 
Insurance Program Annual Data Collection, https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/annual-data-collection.
---------------------------------------------------------------------------

    (1) Changes to the market share, premium volume, and policyholder 
surplus of small insurers relative to large insurers.
    (2) How the property and casualty insurance market for terrorism 
risk differs between small and large insurers, and whether such a 
difference exists within other perils.
    (3) The impact of the Program's mandatory availability requirement 
under Section 103(c) of TRIA on small insurers.
    (4) The effect of increasing the trigger amount for the Program 
under Section 103(e)(1)(B) of TRIA for small insurers.
    (5) The availability and cost of private reinsurance for small 
insurers.
    (6) The impact that state workers' compensation laws have on small 
insurers and workers' compensation carriers in the terrorism risk 
insurance marketplace.
    In addition, Treasury welcomes qualitative and quantitative 
comments on the following additional topics that may be relevant to the 
competitiveness of small insurers in the terrorism risk insurance 
marketplace.
    (1) Any potential constraints or market effects on the ability of 
small insurers to provide coverage for nuclear, chemical, biological, 
and radiological (NBCR) risks.
    (2) Any risk management strategies and challenges faced by small 
insurers in maintaining the ability to pay losses associated with 
insured claims that are not subject to claims for the federal share of 
compensation (e.g., losses below the Program Trigger, within the 
insurer deductible, and within the insurer co-pay share).
    (3) The effects, if any, on small insurer participation in the 
terrorism risk insurance marketplace of the 2019 reauthorization of the 
Program until December 31, 2027, under the sharing mechanisms in place 
as of Calendar Year 2020.\3\
---------------------------------------------------------------------------

    \3\ See Terrorism Risk Insurance Program Reauthorization Act of 
2019, Public Law 116-94, 133 Stat. 2534.
---------------------------------------------------------------------------

    (4) The role of small insurers in covering cyber-related acts of 
terrorism under the Program, including any relevant developments in the 
cyber insurance market.
    (5) The role of small insurers in covering terrorism risk under the 
Program for Places of Worship.\4\
---------------------------------------------------------------------------

    \4\ As defined in Treasury's TRIP Data Calls. See, e.g., 
Instructions for Terrorism Risk Insurance Program (TRIP) 2023 Data 
Call Small Insurers at 22, located at https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/annual-data-collection.
---------------------------------------------------------------------------

    (6) The use of risk modeling techniques and other analytical tools 
by small insurers to assess their risk exposure to losses within the 
scope of the Program.
    Treasury issued its first three studies of small insurers under 
TRIA in June 2017,\5\ June 2019,\6\ and June 2021.\7\ In those studies, 
Treasury addressed the statutory issues identified above, with 
reference to data collected by Treasury in the TRIP Data Calls, as well 
as other available sources. Treasury requests further comment on these 
issues from

[[Page 18376]]

interested parties, particularly with respect to any issue that an 
interested party believes may not be fully evident solely by reference 
to the aggregated data collected by Treasury.
---------------------------------------------------------------------------

    \5\ U.S. Treasury, Study of Small Insurer Competitiveness in the 
Terrorism Risk Insurance Marketplace (June 2017), https://home.treasury.gov/system/files/311/Study_of_Small_Insurer_Competitiveness_in_the_Terrorism_Risk_Insurance_Marketplace_%28June_2017%29.pdf.
    \6\ U.S. Treasury, Study of Small Insurer Competitiveness in the 
Terrorism Risk Insurance Marketplace (June 2019), https://home.treasury.gov/system/files/311/2019_TRIP_SmallInsurer_Report.pdf.
    \7\ U.S. Treasury, Study of Small Insurer Competitiveness in the 
Terrorism Risk Insurance Marketplace (June 2021), https://home.treasury.gov/system/files/311/2021TRIPSmallInsurerReportJune2021.pdf.

Steven E. Seitz,
Director, Federal Insurance Office.
[FR Doc. 2023-06423 Filed 3-27-23; 8:45 am]
BILLING CODE 4810-AK-P
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