[Federal Register Volume 87, Number 61 (Wednesday, March 30, 2022)]
[Notices]
[Pages 18473-18474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06681]


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DEPARTMENT OF THE TREASURY


2022 Report on the Effectiveness of the Terrorism Risk Insurance 
Program

AGENCY: Departmental Offices, Department of the Treasury.

ACTION: Request for comment.

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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, 2022 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 16, 2022.

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 2022 
report on the effectiveness of the Terrorism Risk Insurance Program 
should be captioned with ``2022 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, 
Sherry Rowlett, Program Analyst, Federal Insurance Office, (202) 622-
1890, Jeremiah Pam, Senior Insurance Regulatory Policy Analyst, Federal 
Insurance Office, (202) 622-7009, or Saurav Banerjee, Senior Insurance 
Regulatory Policy Analyst, Federal Insurance Office, (202) 622-5330. 
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 that is to be submitted by June 30, 2022 will 
include an analysis of information that is being collected by Treasury 
through the 2022 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.
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    \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 2022 Data Call, 86 FR 64600 
(November 18, 2021) (identifying proposed changes to 2022 TRIP Data 
Call).
    \3\ TRIA section 108(h).
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II. Solicitation for Comments

    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

[[Page 18474]]

    5. Any impact of TRIP on workers' compensation insurers in 
particular.
    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 meaningful 
opportunity for stakeholder engagement. In addition, and more 
generally, such public input may assist the Secretary in the 
administration of TRIP.
    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, 
in addition to those factors specified in TRIA, could have an impact on 
the effectiveness of the Program. Treasury accordingly also seeks 
comments on the following topics:

General Questions

    1. Whether any lines of insurance or coverages within certain lines 
of insurance currently subject to the Program no longer require the 
support of TRIP to ensure the availability and affordability of 
terrorism risk insurance;
    2. Whether any lines of insurance or coverages within certain lines 
of insurance currently not subject to the Program should be included 
within TRIP to promote the availability and affordability of terrorism 
risk insurance;
    3. Whether, and in what fashion, insurance market changes 
associated with the impact of the COVID-19 pandemic have also affected 
the market for terrorism risk insurance;
    4. The availability of terrorism risk insurance coverage for losses 
arising from nuclear, biological, chemical, or radiological (NBCR) 
exposures, and the availability of reinsurance or capital markets 
support for such terrorism risk insurance;

Cyber-Related Questions

    5. The current state of the cyber insurance market, including the 
scope of coverage available, the availability and affordability of such 
coverage, and the effect of ransomware-related losses on the market;
    6. Terrorism risk insurance issues presented by cyber-related 
losses, and the impact of TRIP in connection with such exposures, 
including views on cyber-related terrorism losses that are included 
within TRIP and those losses outside of TRIP;
    7. 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 sharing mechanisms for cyber-related losses;
    8. The availability of reinsurance or capital markets support for 
cyber-related losses arising from acts of terrorism as defined under 
TRIA;

Other Questions

    9. The manner in which captive insurers access TRIP, including the 
extent to which coverage is provided on a standalone versus embedded 
basis, or for NBCR risks only, and the reasons behind such choices;
    10. The current status of terrorism risk modeling capabilities, and 
the use of those techniques in the placement of terrorism risk 
insurance;
    11. Given the increasing availability of more granular information 
than state or metropolitan level information (such as ZIP code level or 
geocoded information), please provide views on how FIO could leverage 
such information to further augment its analysis of the terrorism risk 
insurance market and TRIP, particularly since the immediate physical 
impact of individual terrorism-related events may be localized; and
    12. 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. 2022-06681 Filed 3-29-22; 8:45 am]
BILLING CODE 4810-AK-P