83 FR 56152 - Terrorism Risk Insurance Program 2019 Data Call

DEPARTMENT OF THE TREASURY

Federal Register Volume 83, Issue 218 (November 9, 2018)

Page Range		56152-56154
FR Document		2018-24546

Pursuant to the Terrorism Risk Insurance Act of 2002 (TRIA),\1\ the Federal Insurance Office (FIO) requests public feedback on the proposed data collection forms for use in the 2019 Terrorism Risk Insurance Program Data Call (2019 TRIP Data Call). As was the case in connection with the 2018 TRIP Data Call, these forms will be utilized in connection with both the federal and state data calls regarding terrorism risk insurance. Copies of these forms and associated explanatory materials (including a document identifying specific changes to the reporting templates and instructions as previously used by Treasury) are available for electronic review on the Treasury website at https://www.treasury.gov/resource-center/fin-mkts/ Pages/TRIP_data.aspx. State insurance regulators, through the National Association of Insurance Commissioners (NAIC), will also be separately seeking comment from stakeholders on the state data call. ---------------------------------------------------------------------------

Federal Register, Volume 83 Issue 218 (Friday, November 9, 2018)

[Federal Register Volume 83, Number 218 (Friday, November 9, 2018)]
[Notices]
[Pages 56152-56154]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-24546]

[[Page 56152]]

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

DEPARTMENT OF THE TREASURY

Terrorism Risk Insurance Program 2019 Data Call

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

ACTION: Request for comments.

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

SUMMARY: Pursuant to the Terrorism Risk Insurance Act of 2002
(TRIA),\1\ the Federal Insurance Office (FIO) requests public feedback
on the proposed data collection forms for use in the 2019 Terrorism
Risk Insurance Program Data Call (2019 TRIP Data Call). As was the case
in connection with the 2018 TRIP Data Call, these forms will be
utilized in connection with both the federal and state data calls
regarding terrorism risk insurance. Copies of these forms and
associated explanatory materials (including a document identifying
specific changes to the reporting templates and instructions as
previously used by Treasury) are available for electronic review on the
Treasury website at https://www.treasury.gov/resource-center/fin-mkts/Pages/TRIP_data.aspx. State insurance regulators, through the National
Association of Insurance Commissioners (NAIC), will also be separately
seeking comment from stakeholders on the state data call.
---------------------------------------------------------------------------

\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.

---------------------------------------------------------------------------
DATES: Submit comments on or before January 8, 2019.

ADDRESSES: Submit comments electronically through the Federal
eRulemaking Portal: http://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 concerning the proposed data collection forms and collection
process should be captioned with ``2019 TRIP Data Call 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), or Lindsey Baldwin,
Senior Policy Analyst, Federal Insurance Office, at (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 and Proposed Consolidated Approach

TRIA created the Terrorism Risk Insurance Program (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
markets to stabilize and build insurance capacity to absorb any future
losses for terrorism events. The Program has been reauthorized on a
number of occasions, most recently in the Terrorism Risk Insurance
Program Reauthorization Act of 2015 (2015 Reauthorization Act).\2\
Section 111 of the 2015 Reauthorization Act \3\ (Section 111) requires
the Secretary of the Treasury (Secretary) to perform periodic analyses
of certain matters concerning the Program. In order to assist the
Secretary with this process, Section 111 requires insurers to submit on
an annual basis certain insurance data and information regarding their
participation in the Program. FIO is authorized to assist the Secretary
in the administration of the Program.\4\
---------------------------------------------------------------------------

\2\ Public Law 114-1, 129 Stat. 3.
\3\ TRIA sec. 104(h).
\4\ 31 U.S.C. 313(c)(1)(D).
---------------------------------------------------------------------------

Treasury began collecting data from insurers in 2016 on a voluntary
basis,\5\ and on a mandatory basis beginning in 2017.\6\ Treasury also
arranged in 2017 for workers' compensation rating bureaus to provide
most of the workers' compensation insurance data elements.\7\ 31 CFR
50.51 requires insurers to submit the specified data no later than May
15 of each calendar year.\8\ In 2018, Treasury and state insurance
regulators (which also collect information on terrorism risk insurance
in separate data calls) agreed on joint reporting templates
substantially similar to those used by Treasury in prior years. For
2019, Treasury and state regulators plan on a similar approach to the
collection of terrorism risk insurance data, subject to a number of
minor changes to the forms utilized in connection with the 2018 TRIP
Data Call. Treasury identifies the proposed changes below.
---------------------------------------------------------------------------

\5\ 81 FR 11649 (March 4, 2016).
\6\ A reporting exemption was extended to small insurers that
wrote less than $10 million in TRIP-eligible lines premiums in 2016.
See 81 FR 95310 (December 27, 2016); 82 FR 20420 (May 1, 2017).
\7\ 82 FR 20420 (May 1, 2017).
\8\ Treasury, through an insurance statistical aggregator, uses
a web portal through which insurers must submit the requested data.
All information submitted via the web portal is subject to the
confidentiality and data protection provisions of applicable federal
law.
---------------------------------------------------------------------------

Insurers subject to the consolidated data call will report on a
group basis, if part of a group, and otherwise will report on an
individual company basis.

II. Changes to Data Collection Templates

Pursuant to Section 111 of the 2015 Reauthorization Act, Treasury
has coordinated with publicly available sources to collect information
for the 2019 TRIP Data Call. Information relating to workers'
compensation exposures is available from the workers' compensation
rating bureaus, and those entities have again agreed to provide that
information on behalf of participating insurers. Treasury has
determined, however, that all other data components remain unavailable
from other sources. Accordingly, Treasury will continue to request this
remaining data and information directly from insurers. By continuing to
collect information on a consolidated basis with state regulators,
however, a significant reduction in overall data collection burdens for
participating insurers is achieved.
After coordinating with state insurance regulators, Treasury again
proposes to use four different data collection templates (see 31 CFR
50.51(c)), depending upon the type of insurer involved. Insurers will
fill out the template identified ``Insurer (Non-Small) Groups or
Companies,'' unless the insurer meets the definition of a small
insurer, captive insurer, or alien surplus lines insurer as set forth
in 31 CFR 50.4. Such small insurers, captive insurers, and alien
surplus lines insurers are required to complete separate tailored
templates. Each template will be accompanied by separate instructions
providing guidance on each data element.
There are two principal changes to the proposed reporting templates
for 2019. First, the exposures worksheet, which is included within all
four reporting templates, will now include separate questions seeking
information on the limits available under the policies of responding
insurers for nuclear, biological, chemical and radiological (NBCR)
exposures, as a subset of the

[[Page 56153]]

total reported policy limits. Second, the reinsurance worksheet that is
required for non-small insurers, alien surplus lines insurers, and
captive insurers will include a new modeled loss question (which
includes an NBCR component).\9\ In addition to these changes, the
instructions for each reporting template will contain certain
clarifications on how to report specific data elements.
---------------------------------------------------------------------------

\9\ Small insurers complete a separate reinsurance worksheet
that does not contain a modeled loss question.
---------------------------------------------------------------------------

Otherwise, the reporting threshold for a small insurer has changed
as well. For the 2019 TRIP Data Call (requesting insurer data for
calendar year 2018), an insurer will qualify as a small insurer if it
had both 2017 policyholder surplus and 2017 direct earned premiums in
the TRIP-eligible lines of insurance of less than $800 million.\10\
Insurers above this threshold will report on the non-small insurer
template, unless they are otherwise subject to reporting on either the
captive insurer template \11\ or the alien surplus lines insurer \12\
template. Small insurers that had TRIP-eligible direct earned premiums
of less than $10 million in 2018 will be exempt from the 2019 TRIP Data
Call.\13\ Neither captive insurers nor alien surplus lines insurers are
eligible for this reporting exemption.
---------------------------------------------------------------------------

\10\ Small insurers are defined in 31 CFR 50.4(z) as insurers
(or an affiliated group of insurers) whose policyholder surplus for
the immediately preceding year is less than five times the Program
Trigger for the current year, and whose TRIP-eligible lines direct
earned premiums for the previous year is also five times less than
the Program Trigger. Accordingly, for the 2019 TRIP Data Call, an
insurer qualifies as a small insurer if its 2017 policyholder
surplus and 2017 direct earned premiums are less than five times the
2018 Program Trigger of $160 million. The Program Trigger is the
amount of aggregate industry insured losses that must be sustained
in a calendar year before the Program will make any payments, even
in connection with a participating insurer that has otherwise
satisfied its individual deductible. TRIA sec. 103(e)(1)(B).
\11\ Captive insurers are defined in 31 CFR 50.4(g) as insurers
licensed under the captive insurance laws or regulations of any
state. As in 2018, captive insurers that write policies in TRIP-
eligible lines of insurance are required to report in 2019, unless
they do not provide their insureds with any terrorism risk insurance
subject to the Program.
\12\ Alien surplus lines insurers are defined in 31 CFR
50.4(o)(1)(i)(B) as insurers not licensed or admitted to engage in
the business of providing primary or excess insurance in any state,
but that are eligible surplus line insurers listed on the NAIC
Quarterly Listing of Alien Insurers. Alien surplus lines insurers
that are part of a larger group classified as a non-small insurer or
a small insurer should report as part of the group, using the
appropriate template. Therefore, the alien surplus lines insurer
template should only be used by an alien surplus lines insurer that
is not part of a larger group subject to the 2019 data call.
\13\ To the extent an insurer with less than this level of TRIP-
eligible lines direct earned premiums is part of a larger group that
is required to report, the insurer must report as part of the group
as a whole, even if it is under the $10,000,000 direct earned
premium threshold on an individual basis. Individual company
information for such entities must also be reported to state
insurance regulators.
---------------------------------------------------------------------------

Reporting insurers can satisfy both the federal and state reporting
obligations by completing the proposed collection forms, and separately
submitting identical copies to the federal and state reporting portals.
State insurance regulators will provide their own guidance regarding
the submission of data to the state reporting portal.

III. Submission of Data

Following registration with the data aggregator, all insurers will
be provided with the appropriate reporting templates for completion
through a secure web portal established by the data aggregator.
Insurers will be required to submit the completed reporting templates
through the same, secure web portal. All data must be provided no later
than May 15, 2019, which will also be the reporting deadline for state
insurance regulators. Treasury intends to provide training and provide
additional resources throughout the data collection period to
facilitate the proper completion of reporting templates. As was the
case in 2018, insurers can report information in either Excel format or
in .csv file format.
Reporting under the 2019 TRIP Data Call will be mandatory for all
commercial property and casualty insurers writing insurance in lines
subject to TRIA, unless the insurer falls within the exceptions for
certain small insurers and captive insurers identified above.

IV. Request for Comments

To ensure efficient and accurate completion of the forms, Treasury
is requesting public feedback on the content of the 2019 TRIP Data Call
reporting templates. The proposed forms are available for review at
https://www.treasury.gov/resource-center/fin-mkts/Pages/TRIP_data.aspx.

V. Procedural Requirements

Paperwork Reduction Act. The collection of information contained in
this notice will be submitted to the Office of Management and Budget
(OMB) for review under the requirements of the Paperwork Reduction Act,
44 U.S.C. 3507(d). Comments should be sent to Treasury in the form
discussed in the ADDRESSES section of this notice. Comments on the
collection of information should be received by January 8, 2019.
Comments are being sought with respect to the collection of
information in the proposed 2019 TRIP Data Call. Treasury specifically
invites comments on: (a) Whether the proposed collection is responsive
to the statutory requirement; (b) the accuracy of the estimate of the
burden of the collections of information (see below); (c) ways to
enhance the quality, utility, and clarity of the information
collection; (d) ways to use automated collection techniques 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 maintain the information.
Treasury has previously analyzed the potential burdens associated
with the TRIP Data Calls. See 81 FR 95310, 95312 (December 27, 2016).
The information sought by Treasury comprises data elements that
insurers currently collect or generate, although not necessarily
grouped together the way in which insurers currently collect and
evaluate the data. Based upon insurer submissions to the 2018 TRIP Data
Call, Treasury estimates that for purposes of the 2019 TRIP Data Call,
approximately 100 Program participants will be required to submit the
``Insurer (Non-Small) Groups or Companies'' data collection form, 200
Program participants will be required to submit the ``Small Insurer''
form, 550 Program participants will be required to submit the ``Captive
Insurer'' form, and 25 Program participants will be required to submit
the ``Alien Surplus Lines Insurers'' form.
Each set of reporting templates is expected to incur a different
level of burden. The changes to the proposed data reporting elements in
2019 are not anticipated to have a material impact on Treasury's prior
burden estimates. Treasury anticipates approximately 75 hours will be
required to collect, process, and report the data for each non-small
insurer, approximately 25 hours will be required to collect, process,
and report data for each small insurer, and 50 hours will be required
to collect, process, and report data for each captive insurer and alien
surplus lines insurer.
Assuming this breakdown, and when applied to the number of
reporting insurers anticipated in light of the experience of the 2018
TRIP Data Call, the estimated annual burden would be 41,250 hours ((100
insurers x 75 hours) + (200 insurers x 25 hours) + (550 insurers x 50
hours) + (25 insurers x 50 hours)). At a blended, fully loaded hourly
rate of $85, the cost would be $3,506,250 across the industry as a
whole, or $6,375 per non-small insurer, $2,125 per small insurer, and
$4,250 each per captive insurer or alien surplus lines insurer.

[[Page 56154]]

Dated: November 2, 2018.
Steven J. Dreyer,
Director, Federal Insurance Office.
[FR Doc. 2018-24546 Filed 11-8-18; 8:45 am]
BILLING CODE 4810-25-P

$56154 Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Notices Dated: November 2, 2018. Steven J. Dreyer, Director, Federal Insurance Office. [FR Doc. 2018–24546 Filed 11–8–18; 8:45 am] BILLING CODE 4810–25–P khammond on DSK30JT082PROD with NOTICES VerDate Sep<11>2014 17:36 Nov 08, 2018 Jkt 247001 PO 00000 Frm 00109 Fmt 4703 Sfmt 9990 E:\FR\FM\09NON1.SGM 09NON1$

Document Created: 2018-11-09 03:34:00
Document Modified: 2018-11-09 03:34:00

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 comments.
Dates		Submit comments on or before January 8, 2019.
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), or Lindsey Baldwin, Senior Policy Analyst, Federal Insurance Office, at (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 56152