83 FR 11815 - 2018 Report on the Effectiveness of the Terrorism Risk Insurance Program
DEPARTMENT OF THE TREASURY Federal Register Volume 83, Issue 52 (March 16, 2018)
Federal Register Volume 83, Issue 52 (March 16, 2018)
| Page Range | 11815-11816 | |
| FR Document | 2018-05433 |
[Federal Register Volume 83, Number 52 (Friday, March 16, 2018)] [Notices] [Pages 11815-11816] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-05433] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY 2018 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 Program Reauthorization Act of 2015 (Reauthorization Act), which extended and amended certain provisions of the Terrorism Risk Insurance Program (TRIP or Program), requires the Secretary of the Treasury (Secretary) to submit a report to Congress by June 30, 2018 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 industry and other stakeholders on the statutory factors that the report must analyze, as well as any other feedback about the effectiveness of TRIP. DATES: Submit comments on or before April 30, 2018. 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 2018 report on the effectiveness of the Terrorism Risk Insurance Program should be captioned with ``2018 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 (this is not a toll-free number) or Lindsey Baldwin, Senior Policy Analyst, Federal Insurance Office, (202) 622-3220 (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 The Terrorism Risk Insurance Act of 2002, as amended (TRIA), 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 the Program is administered by the Secretary with the assistance of FIO. Section 111 of the Reauthorization Act (Pub. L. 114-1) requires the Secretary to prepare and submit reports 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. The report which is to be submitted by June 30, 2018 will also include an analysis of information that is being collected by Treasury through the 2018 TRIP Data Call,\1\ [[Page 11816]] which will gather certain data appropriate to analyze the effectiveness of TRIP. --------------------------------------------------------------------------- \1\ The proposed data collection for Calendar Year 2018 that Treasury will use in analyzing the Program has been described by Treasury in a separate notice. 82 FR 56328 (November 28, 2017). Treasury will also discuss the results of the prior 2017 TRIP Data Call in this report on the effectiveness of the Program. --------------------------------------------------------------------------- II. Solicitation for Comments The Section 111 factors that must be considered in the report and on which Treasury seeks comments include: 1. The overall effectiveness of TRIP; 2. Any changes or trends you have observed relating to the data Treasury is collecting under Section 111 of the Reauthorization Act; 3. Whether any aspects of TRIP have the effect of discouraging or impeding insurers from providing commercial property casualty insurance coverage or coverage for acts of terrorism; and 4. Any impact of TRIP on workers' compensation insurers in particular. Collecting information and views via this request for comments on the matters that must be addressed in the report will enhance the accuracy and value of the report to Congress, by offering qualitative feedback that may not be otherwise observable through the results of the TRIP Data Calls. Comments from insurers that are otherwise providing data, from other stakeholders, and from the public at large will assist the Secretary in the formulation of the report. In addition to comments on the above statutory factors, Treasury also seeks comments on: 5. The availability and affordability of terrorism risk insurance coverage, both nationally and in particular geographic areas; 6. Whether any lines of insurance or coverages within certain lines of insurance currently subject to the Program do not require the support of TRIP; 7. The market for standalone terrorism risk insurance that is written outside of TRIP, the reasons such coverage is offered and obtained, and whether the existence of such insurance provides any insights into the effectiveness of the Program; 8. The availability and affordability of private reinsurance, or capital markets support, for terrorism risk insurance exposures (both those which are currently subject to support under TRIP as well as those otherwise held by insurers participating in TRIP); 9. The extent to which reinsurance for terrorism risk is being obtained as part of catastrophe reinsurance programs generally, the reasons for this, and how if at all this has affected market capacity for terrorism risk reinsurance generally; 10. Any factors that impede private reinsurance or capital markets support for terrorism risk insurance; 11. The availability of terrorism risk insurance coverage for losses arising from nuclear, biological, chemical, or radiological (NBCR) exposures, and the availability of private reinsurance or capital markets support for such terrorism risk insurance; 12. Terrorism risk insurance issues presented by cyber-related losses, the impact of TRIP in connection with such exposures, and any reforms that would encourage the take up of insurance for cyber-related losses arising from acts of terrorism within the meaning of TRIA; \2\ --------------------------------------------------------------------------- \2\ Treasury has previously addressed the application of TRIP to policies covering cyber-related losses. 81 FR 95312 (December 27, 2016). --------------------------------------------------------------------------- 13. Private reinsurance or capital markets support for cyber- related losses arising from acts of terrorism within the meaning of TRIA; and 14. Any other issues relating to TRIP or terrorism risk insurance or reinsurance that may be relevant to an assessment of the effectiveness of TRIP in the report. Dated: March 12, 2018. Steven E. Seitz, Deputy Director, Federal Insurance Office. [FR Doc. 2018-05433 Filed 3-15-18; 8:45 am] BILLING CODE 4810-25-P
![Federal Register / Vol. 83, No. 52 / Friday, March 16, 2018 / Notices 11815
with a streamlined front coupler cover submitting the comment (or signing the on the effectiveness of the Terrorism
for improved aerodynamic and esthetic document, if submitted on behalf of an Risk Insurance Program should be
purposes. BLF will use the front coupler association, business, labor union, etc.). captioned with ‘‘2018 TRIP
for rescue purposes only, and proposes Under 5 U.S.C. 553(c), DOT solicits Effectiveness Report.’’ In general,
to remove the coupler cover at 184-day comments from the public to better Treasury will post all comments to
inspection intervals as required by 49 inform its processes. DOT posts these www.regulations.gov without change,
CFR 229.23 (b)(1). During the daily comments, without edit, including any including any business or personal
inspection the front coupler will be personal information the commenter information provided such as names,
visually inspected as best as possible provides, to www.regulations.gov, as addresses, email addresses, or telephone
from the bottom. The nose cone will not described in the system of records numbers. All comments, including
be removed unless the bottom visual notice (DOT/ALL–14 FDMS), which can attachments and other supporting
inspection warrants further be reviewed at https:// materials, are part of the public record
investigation based on the requirements www.transportation.gov/privacy. See and subject to public disclosure. You
of 49 CFR 229.61. If the front coupler is also https://www.regulations.gov/ should submit only information that
used in operations prior to the next privacyNotice for the privacy notice of you wish to make available publicly.
daily inspection, the coupler will be regulations.gov. Where appropriate, a comment should
completely inspected before the coupler include a short Executive Summary (no
Robert C. Lauby,
cover is replaced. more than five single-spaced pages).
A copy of the petition, as well as any Associate Administrator for Railroad Safety Additional Instructions. Responses
written communications concerning the Chief Safety Officer. should also include: (1) The data or
petition, is available for review online at [FR Doc. 2018–05309 Filed 3–15–18; 8:45 am] rationale, including examples,
www.regulations.gov and in person at BILLING CODE 4910–06–P supporting any opinions or conclusions;
the U.S. Department of Transportation’s and (2) any specific legislative,
(DOT) Docket Operations Facility, 1200 administrative, or regulatory proposals
New Jersey Avenue SE, W12–140, DEPARTMENT OF THE TREASURY for carrying out recommended
Washington, DC 20590. The Docket approaches or options.
Operations Facility is open from 9 a.m. 2018 Report on the Effectiveness of FOR FURTHER INFORMATION CONTACT:
to 5 p.m., Monday through Friday, the Terrorism Risk Insurance Program Richard Ifft, Senior Insurance
except Federal Holidays. AGENCY: Departmental Offices, U.S. Regulatory Policy Analyst, Federal
Interested parties are invited to Department of the Treasury. Insurance Office, (202) 622–2922 (this is
participate in these proceedings by not a toll-free number) or Lindsey
ACTION: Request for comment.
submitting written views, data, or Baldwin, Senior Policy Analyst, Federal
comments. FRA does not anticipate SUMMARY: The Terrorism Risk Insurance Insurance Office, (202) 622–3220 (not a
scheduling a public hearing in Program Reauthorization Act of 2015 toll free number). Persons who have
connection with these proceedings since (Reauthorization Act), which extended difficulty hearing or speaking may
the facts do not appear to warrant a and amended certain provisions of the access these numbers via TTY by calling
hearing. If any interested parties desire Terrorism Risk Insurance Program (TRIP the toll-free Federal Relay Service at
an opportunity for oral comment and a or Program), requires the Secretary of (800) 877–8339.
public hearing, they should notify FRA, the Treasury (Secretary) to submit a SUPPLEMENTARY INFORMATION:
in writing, before the end of the report to Congress by June 30, 2018
comment period and specify the basis concerning, in general, the overall I. Background
for their request. effectiveness of TRIP. To assist the The Terrorism Risk Insurance Act of
All communications concerning these Secretary in formulating the report, the 2002, as amended (TRIA), requires
proceedings should identify the Federal Insurance Office (FIO) within participating insurers to make insurance
appropriate docket number and may be the Department of the Treasury available for losses resulting from acts of
submitted by any of the following (Treasury) is seeking comments from the terrorism, and provides a federal
methods: industry and other stakeholders on the government backstop for the insurers’
• Website: http:// statutory factors that the report must resulting financial exposure. TRIA
www.regulations.gov. Follow the online analyze, as well as any other feedback established TRIP within Treasury, and
instructions for submitting comments. about the effectiveness of TRIP. the Program is administered by the
• Fax: 202–493–2251. Secretary with the assistance of FIO.
DATES: Submit comments on or before
• Mail: Docket Operations Facility,
April 30, 2018. Section 111 of the Reauthorization Act
U.S. Department of Transportation, 1200
ADDRESSES: Submit comments (Pub. L. 114–1) requires the Secretary to
New Jersey Avenue SE, W12–140,
electronically through the Federal prepare and submit reports to the
Washington, DC 20590.
Committee on Financial Services of the
• Hand Delivery: 1200 New Jersey eRulemaking Portal at http://
www.regulations.gov, in accordance House of Representatives and the
Avenue SE, Room W12–140,
with the instructions on that site, or by Committee on Banking, Housing, and
Washington, DC 20590, between 9 a.m.
mail to the Federal Insurance Office, Urban Affairs of the Senate on, among
and 5 p.m., Monday through Friday,
Attn: Richard Ifft, Room 1410 MT, other things, the impact and
except Federal Holidays.
Communications received by April Department of the Treasury, 1500 effectiveness of TRIP. The report which
30, 2018 will be considered by FRA Pennsylvania Avenue NW, Washington, is to be submitted by June 30, 2018 will
daltland on DSKBBV9HB2PROD with NOTICES
before final action is taken. Comments DC 20220. Because postal mail may be also include an analysis of information
received after that date will be subject to processing delays, it is that is being collected by Treasury
considered if practicable. recommended that comments be through the 2018 TRIP Data Call,1
Anyone can search the electronic submitted electronically. If submitting 1 The proposed data collection for Calendar Year
form of any written communications comments by mail, please submit an 2018 that Treasury will use in analyzing the
and comments received into any of our original version with two copies. Program has been described by Treasury in a
dockets by the name of the individual Comments concerning the 2018 report Continued
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![11816 Federal Register / Vol. 83, No. 52 / Friday, March 16, 2018 / Notices
which will gather certain data large will assist the Secretary in the 10. Any factors that impede private
appropriate to analyze the effectiveness formulation of the report. In addition to reinsurance or capital markets support
of TRIP. comments on the above statutory for terrorism risk insurance;
factors, Treasury also seeks comments 11. The availability of terrorism risk
II. Solicitation for Comments
on: insurance coverage for losses arising
The Section 111 factors that must be 5. The availability and affordability of from nuclear, biological, chemical, or
considered in the report and on which terrorism risk insurance coverage, both radiological (NBCR) exposures, and the
Treasury seeks comments include: nationally and in particular geographic availability of private reinsurance or
1. The overall effectiveness of TRIP; areas; capital markets support for such
2. Any changes or trends you have terrorism risk insurance;
observed relating to the data Treasury is 6. Whether any lines of insurance or
12. Terrorism risk insurance issues
collecting under Section 111 of the coverages within certain lines of
presented by cyber-related losses, the
Reauthorization Act; insurance currently subject to the
impact of TRIP in connection with such
3. Whether any aspects of TRIP have Program do not require the support of
exposures, and any reforms that would
the effect of discouraging or impeding TRIP;
encourage the take up of insurance for
insurers from providing commercial 7. The market for standalone terrorism cyber-related losses arising from acts of
property casualty insurance coverage or risk insurance that is written outside of terrorism within the meaning of TRIA; 2
coverage for acts of terrorism; and TRIP, the reasons such coverage is 13. Private reinsurance or capital
4. Any impact of TRIP on workers’ offered and obtained, and whether the markets support for cyber-related losses
compensation insurers in particular. existence of such insurance provides arising from acts of terrorism within the
Collecting information and views via any insights into the effectiveness of the meaning of TRIA; and
this request for comments on the Program; 14. Any other issues relating to TRIP
matters that must be addressed in the 8. The availability and affordability of or terrorism risk insurance or
report will enhance the accuracy and private reinsurance, or capital markets reinsurance that may be relevant to an
value of the report to Congress, by support, for terrorism risk insurance assessment of the effectiveness of TRIP
offering qualitative feedback that may exposures (both those which are in the report.
not be otherwise observable through the currently subject to support under TRIP Dated: March 12, 2018.
results of the TRIP Data Calls. as well as those otherwise held by Steven E. Seitz,
Comments from insurers that are insurers participating in TRIP);
otherwise providing data, from other Deputy Director, Federal Insurance Office.
9. The extent to which reinsurance for [FR Doc. 2018–05433 Filed 3–15–18; 8:45 am]
stakeholders, and from the public at terrorism risk is being obtained as part
BILLING CODE 4810–25–P
of catastrophe reinsurance programs
separate notice. 82 FR 56328 (November 28, 2017).
Treasury will also discuss the results of the prior
generally, the reasons for this, and how 2 Treasury has previously addressed the
2017 TRIP Data Call in this report on the if at all this has affected market capacity application of TRIP to policies covering cyber-
effectiveness of the Program. for terrorism risk reinsurance generally; related losses. 81 FR 95312 (December 27, 2016).
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Document Created: 2018-03-16 01:11:57
Document Modified: 2018-03-16 01:11:57
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Request for comment. | |
| Dates | Submit comments on or before April 30, 2018. | |
| Contact | Richard Ifft, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, (202) 622-2922 (this is not a toll-free number) or Lindsey Baldwin, Senior Policy Analyst, Federal Insurance Office, (202) 622-3220 (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. | |
| FR Citation | 83 FR 11815 |
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