The US Department of the Treasury has submitted a proposal to the Office of Management and Budget for a data and information collection from property and casualty insurers regarding the Terrorism Risk Insurance Program (TRIP).
Created under the Terrorism Risk Insurance Act of 2002, TRIP is a federal loss-sharing programme for certain insured losses stemming from a certified act of terrorism, while the Terrorism Risk Insurance Program Reauthorization Act of 2015 acts as a type of reinsurance for commercial property and casualty insurance policies.
The treasury department is seeking public feedback to gain more detailed information in the areas of captive insurance and cyber insurance, as these are the two general categories of material changes to the proposed reporting templates for TRIP in 2022.
An advisory committee recommended that the department evaluate the way in which captive insurers access TRIP, to ensure that the risk-sharing principles of the programme are adhered to.
With this in mind, the Treasury proposes to expand the detail of information required from captive insurers concerning their underwriting of terrorism risk insurance, as well as other general lines of insurance they provide.
In addition, the proposed changes would see more detailed information regarding cyber insurance written by insurers subject to the programme — such as the type and size of policyholders, coverage for ransomware-related losses and existing claims information — to reassess the Treasury’s response to cyber-related incidents that could affect the effectiveness of TRIP.
Written comments and recommendations must be received by 18 March 2022.
The Treasury issued proposed rules to implement technical changes, including the participation of captives, to TRIP in November 2020.
