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[Federal Register Volume 89, Number 228 (Tuesday, November 26, 2024)]
[Notices]
[Pages 93405-93407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27640]

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DEPARTMENT OF THE TREASURY

Agency Information Collection Activities, Proposed Collection, 
and Comment Request; Terrorism Risk Insurance Program--Data Collection 
Forms

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

ACTION: Notice and request for comments.

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SUMMARY: The Secretary of the Treasury (Secretary) administers the 
Terrorism Risk Insurance Program (TRIP or Program), including the 
issuance of regulations and procedures regarding the Program. The 
Federal Insurance Office (FIO) assists the Secretary in the 
administration of the Program. The Department of the Treasury 
(Treasury), as part of its continuing effort to reduce paperwork 
burdens, invites the general public and other Federal agencies to 
comment on approved information collections for annual data collection 
that are due for extension by the Office of Management and Budget (OMB) 
(currently approved under OMB 1505-0257). These forms will be utilized, 
beginning in calendar year 2025, in connection with both the federal 
and state annual data calls regarding terrorism risk insurance. State 
insurance regulators, through the National Association of Insurance 
Commissioners (NAIC), will separately address any comments sought or 
made in connection with the state data call.

DATES: Submit comments on or before January 27, 2025.

[[Page 93406]]

ADDRESSES: Submit comments electronically through the Federal 
eRulemaking Portal: https://www.regulations.gov, within Docket No. 
TREAS-TRIP-2024-0016, 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 
``TRIP Data Call Form 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, Lead Management and 
Senior Insurance Policy Analyst, Terrorism Risk Insurance Program, 
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 Mallory Marchant, Policy Advisor, Federal 
Insurance Office, at (202) 622-4793 (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),\1\ 
established the Terrorism Risk Insurance Program (TRIP or Program).\2\ 
The Act establishes a temporary federal program of shared public and 
private compensation for insured commercial property and casualty 
losses resulting from an ``act of terrorism,'' as defined by TRIA. The 
Act requires the Secretary to perform periodic analyses of certain 
matters concerning the Program. In order to assist the Secretary with 
these analyses and administration of the Program, TRIA requires 
insurers to submit on an annual basis certain insurance data and 
information regarding their participation in the Program.\3\ FIO is 
authorized to assist the Secretary in the administration of the 
Program.\4\
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    \1\ 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\ See 31 CFR part 50.
    \3\ TRIA sec. 104(h).
    \4\ 31 U.S.C. 313(c)(1)(D).
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    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\ In 2018, 
Treasury and state insurance regulators (which also collect information 
on terrorism risk insurance in a separate data call) agreed on joint 
reporting templates substantially similar to those used by Treasury in 
prior years.\8\ The forms that are currently approved for use by 
Treasury, and which were utilized during the 2024 TRIP Data Call, 
expire effective March 31, 2025.
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    \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\ 83 FR 14718 (April 5, 2018).
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    Treasury seeks to continue to use the same forms for the next 
three-year period, subject to non-material modifications each year 
during the upcoming three-year period relating to the dates for which 
data is sought, the incorporation of any changes to relevant Program 
thresholds, and changes to the unique modeled loss question posed each 
year to estimate the potential impact upon the Program from 
hypothetical terrorism loss events.
    In accordance with TRIA, Treasury has evaluated whether publicly 
available sources can supply the information needed in the annual data 
call. Information relating to workers' compensation exposures is 
available from the workers' compensation rating bureaus, and Treasury 
will continue to coordinate with those entities 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, Treasury will achieve a significant reduction in overall data 
collection burdens for participating insurers.

II. Data Collection Process

    Treasury expects the data collection process to remain the same 
while the proposed forms are in effect. Treasury again proposes to use 
four different data collection forms,\9\ depending upon the type of 
insurer involved. Insurers will fill out the form 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 forms that are tailored for each type of entity. Separate 
instructions providing guidance on each requested data element 
accompany each form. There are reporting thresholds that affect what 
form a particular insurer needs to complete, or whether the insurer is 
subject to any reporting. Reporting insurers submit information to 
Treasury through a portal managed by a data aggregator retained by 
Treasury, as required by TRIA. State regulators require insurers to 
submit the same information for state purposes through a portal 
operated by New York State.
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    \9\ See 31 CFR 50.51(c).
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    Treasury will issue a Federal Register Notice each year identifying 
when the data collect portal is open to receive submissions, 
identifying any non-material changes to the reporting forms and 
instructions, and providing further technical details respecting the 
reporting. To the extent Treasury determines to make any material 
changes to the existing data collection forms, it will provide public 
notice and opportunity to comment, incidental to an application for 
approval to OMB.

III. Request for Comments

    Copies of the existing forms that Treasury seeks to renew and 
associated instructions are available for electronic review on the 
Treasury website at https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/annual-data-collection. 
Treasury is requesting public feedback on the content of these 
reporting forms.

IV. Procedural Requirements

    Paperwork Reduction Act. Comments submitted in response to this 
notice will be summarized and included in the request for Office of 
Management and Budget approval that will be submitted 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 27, 2025.

[[Page 93407]]

    Comments are being sought with respect to the collection of 
information in the proposed annual 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.
    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 2024 TRIP Data 
Call, Treasury estimates that for purposes of future annual TRIP Data 
Calls, approximately 90 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, 625 Program participants will be required to submit the 
``Captive Insurer'' form, and 100 Program participants will be required 
to submit the ``Alien Surplus Lines Insurers'' form.
    Treasury has previously analyzed the potential burdens associated 
with completing the annual TRIP Data Call forms.\10\ Treasury expects 
each set of reporting templates to incur a different level of burden, 
based upon the different components contained in each reporting 
template and the number of insurers within each that will need to 
respond to each worksheet. Based upon its prior estimates, Treasury 
anticipates that approximately 90 hours will be required on average to 
collect, process, and report the data for each non-small insurer. For 
each small insurer, approximately 32 hours will be required to collect, 
process, and report data. Approximately 52 hours will be required to 
collect, process, and report data for each captive insurer. Finally, 
approximately 57 hours will be required to collect, process, and report 
data for each alien surplus lines insurer.
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    \10\ See Terrorism Risk Insurance Program 2022 Data Call, 86 FR 
64600, 64603 (November 18, 2021). The proportion of insurers 
completing the various worksheets within each category of form today 
remain roughly the same as Treasury calculated in 2021, leading to 
no change in the number of hours burden estimates for each catetory 
of insurer.
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    Assuming this breakdown, and when applied to the number of 
estimated reporting insurers, the estimated annual burden would be 
52,700 hours ((90 non-small insurers x 90 hours) + (200 small insurers 
x 32 hours) + (625 captive insurers x 52 hours) + (100 alien surplus 
lines insurers x 57 hours)). At a blended, fully loaded hourly rate of 
$69.45,\11\ the cost would be $3,660,015 across the industry as a 
whole, or $6,250.50 per non-small insurer, $2,222.40 per small insurer, 
$3,611.40 per each captive insurer, and $3,958.65 each per alien 
surplus lines insurer.
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    \11\ Based on data from the Bureau of Labor Statistics, for 
Insurance Carriers and Related Activities, https://www.bls.gov/iag/tgs/iag524.htm#earnings. The average wage rate for all insurance 
employees was $45.30 in August 2024, and the total benefit 
compensation in the 2nd Quarter of 2024 was 34.8%, which is a 
benefit multiplier of 1.533. Therefore, a fully loaded wage rate for 
insurance employees is $69.45, or $45.30 x 1.533.

    Dated: November 20, 2024.
Steven E. Seitz,
Director, Federal Insurance Office.
[FR Doc. 2024-27640 Filed 11-25-24; 8:45 am]
BILLING CODE 4810-AK-P
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