2024 Report on the Effectiveness of the Terrorism Risk Insurance Program, 19639-19640 [2024-05750]
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Federal Register / Vol. 89, No. 54 / Tuesday, March 19, 2024 / Notices
Issued in Washington, DC, on March 13,
2024.
William Chadwick, Jr.,
Director, Office of Airline Information,
Bureau of Transportation Statistics.
[FR Doc. 2024–05754 Filed 3–18–24; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
2024 Report on the Effectiveness of
the Terrorism Risk Insurance Program
Departmental Offices, U.S.
Department of the Treasury.
ACTION: Request for comment.
AGENCY:
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, 2024
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 3, 2024.
ADDRESSES: Submit comments
electronically through the Federal
eRulemaking Portal at https://
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 2024 report
on the effectiveness of the Terrorism
Risk Insurance Program should be
captioned with ‘‘2024 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.
ddrumheller on DSK120RN23PROD with NOTICES1
SUMMARY:
VerDate Sep<11>2014
17:41 Mar 18, 2024
Jkt 262001
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, Lead Management and
Senior Insurance Policy Analyst,
Terrorism Risk Insurance Program, (202)
622–2922, or Theodore Newman, Senior
Insurance Regulatory Policy Analyst,
Federal Insurance Office, (202) 622–
1748. 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 to be submitted by
June 30, 2024 will include an analysis
of information that is being collected by
Treasury through the 2024 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
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 A notice announcing the commencement of the
2024 TRIP Data Call also appears in this issue of
the Federal Register.
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
19639
insurance marketplace,3 as well as to
assist Treasury more generally in the
administration of TRIP.
II. Solicitation for Comments
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 a meaningful opportunity
for stakeholder engagement. In addition,
and more generally, such public input
may assist the Secretary in the
administration of TRIP.
Statutory Factors
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
5. Any impact of TRIP on workers’
compensation insurers in particular.
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, other than those factors
specified in TRIA, could have an impact
on the effectiveness of the Program, as
well as FIO’s administration of TRIP.
Treasury accordingly also seeks
comments on the following topics:
Additional Topics
1. Whether the lines of insurance
currently subject to the Program
properly identify those areas where
TRIP is necessary to ensure the
availability and affordability of
terrorism risk insurance, or whether
certain lines of insurance should either
be deleted or added;
2. The availability of terrorism risk
insurance coverage for losses arising
from nuclear, biological, chemical, or
radiological (NBCR) exposures, and the
3 TRIA
E:\FR\FM\19MRN1.SGM
sec. 108(h).
19MRN1
19640
Federal Register / Vol. 89, No. 54 / Tuesday, March 19, 2024 / Notices
availability of reinsurance or capital
markets support for terrorism risk
insurance for such exposures;
3. Changes in the property, casualty,
and reinsurance markets since the 2022
Program Effectiveness Report that may
have affected the pricing, affordability,
availability, and take up of terrorism
risk insurance;
ddrumheller on DSK120RN23PROD with NOTICES1
Cyber-Related Topics
4. Terrorism risk insurance issues
presented by cyber-related losses, and
the potential response of TRIP in
connection with such exposures,
including your views on the type of
cyber-related terrorism losses that may
be included within TRIP and those
losses that may not be covered by TRIP;
5. 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 TRIP risksharing mechanisms for cyber-related
losses, including how TRIP would
respond to potential catastrophic cyber
events;
6. The availability of reinsurance or
capital markets support for cyber-related
losses arising from acts of terrorism as
defined under TRIA;
Other Topics
7. How captive insurers access TRIP,
including the extent to which they
provide coverage on a standalone versus
embedded basis, or provide coverage for
NBCR risks only;
8. The current status of terrorism risk
modeling capabilities, and the use of
those techniques in the placement of
terrorism risk insurance;
9. Given the nature of terrorism risk,
whether FIO should be seeking more
granular information than state or
metropolitan level information (such as
ZIP code level or geocoded information)
to assist in FIO’s analysis of the
terrorism risk insurance market and
TRIP;
10. How and whether developments
in Artificial Intelligence technologies
will affect terrorism insurance
underwriting, marketing, claims
management, and perils;
11. In what ways, if any, small
business clients face distinct challenges
in the terrorism insurance market and
whether small business have materially
different exposures or take-up rates from
the broader terrorism insurance market;
12. Given that FIO now chairs the
International Forum of Terrorism
(Re)Insurance Pools, any issues that FIO
should consider in its engagement with
VerDate Sep<11>2014
17:41 Mar 18, 2024
Jkt 262001
international entities or authorities
providing support for terrorism risk
insurance or reinsurance; and
13. 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. 2024–05750 Filed 3–18–24; 8:45 am]
BILLING CODE 4810–AK–P
DEPARTMENT OF THE TREASURY
2024 Terrorism Risk Insurance
Program Data Call
Departmental Offices, U.S.
Department of the Treasury.
ACTION: Data collection.
AGENCY:
Pursuant to the Terrorism
Risk Insurance Act of 2002, as amended
(TRIA), insurers that participate in the
Terrorism Risk Insurance Program (TRIP
or Program) are directed to submit
information for the 2024 TRIP Data Call,
which covers the reporting period from
January 1, 2023 to December 31, 2023.
Participating insurers are required to
register and report information in a
series of forms approved by the Office
of Management and Budget (OMB). All
insurers writing commercial property
and casualty insurance in lines subject
to TRIP, subject to certain exceptions
identified in this notice, must respond
to this data call no later than May 15,
2024.
DATES: Participating insurers must
register and submit data no later than
May 15, 2024.
ADDRESSES: Participating insurers will
register through a website that has been
established for this data call. After
registration, insurers will receive data
collection forms through a secure file
transfer portal, and they will submit the
requested data through the same secure
portal. Participating insurers can
register for the 2024 TRIP Data Call at
https://tripsection111data.com.
Additional information about the data
call, including sample data collection
forms and instructions, can be found on
the TRIP website at https://
home.treasury.gov/policy-issues/
financial-markets-financial-institutionsand-fiscal-service/federal-insuranceoffice/terrorism-risk-insurance-program/
annual-data-collection.
FOR FURTHER INFORMATION CONTACT:
Richard Ifft, Lead Management and
Senior Insurance Policy Analyst,
Terrorism Risk Insurance Program,
Room 1410, Department of the Treasury,
SUMMARY:
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
1500 Pennsylvania Avenue NW,
Washington, DC 20220, (202) 622–2922;
or Theodore Newman, Senior Insurance
Regulatory Policy Analyst, Federal
Insurance Office Room 1410,
Department of the Treasury, 1500
Pennsylvania Avenue NW, Washington,
DC 20220, (202) 622–1748. 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 created the Program within the
U.S. Department of the Treasury
(Treasury) 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 market to stabilize and build
insurance capacity to absorb any future
losses for terrorism events. The Program
has been reauthorized on a number of
occasions, and was most recently
extended until December 31, 2027.2
TRIA requires the Secretary of the
Treasury (Secretary) to collect certain
insurance data and information from
insurers on an annual basis regarding
their participation in the Program.3
TRIA also requires the Secretary to
prepare a biennial report on the
effectiveness of the Program
(Effectiveness Report).4 The
Effectiveness Report must be submitted
to Congress by June 30, 2024. The
Federal Insurance Office (FIO) is
authorized to assist the Secretary in the
administration of the Program,5
including conducting the annual data
call and preparing reports and studies
required under TRIA.
II. Elements of the 2024 TRIP Data Call
For purposes of the 2024 TRIP Data
Call, FIO, state insurance regulators, and
the National Association of Insurance
Commissioners (NAIC) will again use
the consolidated data call mechanism
first developed for use in the 2018 TRIP
Data Call. This approach relies on four
joint reporting templates, to be
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
Reauthorization Act of 2019, Public Law 116–94,
133 Stat. 2534.
3 TRIA, sec. 104(h)(1). Treasury regulations also
address the annual data collection requirement. See
31 CFR 50.51, 50.54.
4 TRIA, sec. 104(h)(2).
5 31 U.S.C. 313(c)(1)(D).
E:\FR\FM\19MRN1.SGM
19MRN1
]]>Agencies
[Federal Register Volume 89, Number 54 (Tuesday, March 19, 2024)]
[Notices]
[Pages 19639-19640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05750]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
2024 Report on the Effectiveness of the Terrorism Risk Insurance
Program
AGENCY: Departmental Offices, U.S. 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, 2024 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 3, 2024.
ADDRESSES: Submit comments electronically through the Federal
eRulemaking Portal at https://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 2024
report on the effectiveness of the Terrorism Risk Insurance Program
should be captioned with ``2024 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, Lead Management and
Senior Insurance Policy Analyst, Terrorism Risk Insurance Program,
(202) 622-2922, or Theodore Newman, Senior Insurance Regulatory Policy
Analyst, Federal Insurance Office, (202) 622-1748. 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 to be submitted by June 30, 2024 will include
an analysis of information that is being collected by Treasury through
the 2024 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\ A notice announcing the commencement of the 2024 TRIP Data
Call also appears in this issue of the Federal Register.
\3\ TRIA sec. 108(h).
---------------------------------------------------------------------------
II. Solicitation for Comments
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 a meaningful
opportunity for stakeholder engagement. In addition, and more
generally, such public input may assist the Secretary in the
administration of TRIP.
Statutory Factors
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
5. Any impact of TRIP on workers' compensation insurers in
particular.
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,
other than those factors specified in TRIA, could have an impact on the
effectiveness of the Program, as well as FIO's administration of TRIP.
Treasury accordingly also seeks comments on the following topics:
Additional Topics
1. Whether the lines of insurance currently subject to the Program
properly identify those areas where TRIP is necessary to ensure the
availability and affordability of terrorism risk insurance, or whether
certain lines of insurance should either be deleted or added;
2. The availability of terrorism risk insurance coverage for losses
arising from nuclear, biological, chemical, or radiological (NBCR)
exposures, and the
[[Page 19640]]
availability of reinsurance or capital markets support for terrorism
risk insurance for such exposures;
3. Changes in the property, casualty, and reinsurance markets since
the 2022 Program Effectiveness Report that may have affected the
pricing, affordability, availability, and take up of terrorism risk
insurance;
Cyber-Related Topics
4. Terrorism risk insurance issues presented by cyber-related
losses, and the potential response of TRIP in connection with such
exposures, including your views on the type of cyber-related terrorism
losses that may be included within TRIP and those losses that may not
be covered by TRIP;
5. 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 TRIP risk-sharing mechanisms for cyber-related losses,
including how TRIP would respond to potential catastrophic cyber
events;
6. The availability of reinsurance or capital markets support for
cyber-related losses arising from acts of terrorism as defined under
TRIA;
Other Topics
7. How captive insurers access TRIP, including the extent to which
they provide coverage on a standalone versus embedded basis, or provide
coverage for NBCR risks only;
8. The current status of terrorism risk modeling capabilities, and
the use of those techniques in the placement of terrorism risk
insurance;
9. Given the nature of terrorism risk, whether FIO should be
seeking more granular information than state or metropolitan level
information (such as ZIP code level or geocoded information) to assist
in FIO's analysis of the terrorism risk insurance market and TRIP;
10. How and whether developments in Artificial Intelligence
technologies will affect terrorism insurance underwriting, marketing,
claims management, and perils;
11. In what ways, if any, small business clients face distinct
challenges in the terrorism insurance market and whether small business
have materially different exposures or take-up rates from the broader
terrorism insurance market;
12. Given that FIO now chairs the International Forum of Terrorism
(Re)Insurance Pools, any issues that FIO should consider in its
engagement with international entities or authorities providing support
for terrorism risk insurance or reinsurance; and
13. 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. 2024-05750 Filed 3-18-24; 8:45 am]
BILLING CODE 4810-AK-P
