More information sought from captives in relation to TRIA
The US Department of Treasury has asked the Office of Management and Budget to approve a new information collection process relating to the Terrorism Risk Insurance Program (TRIA), which will seek more information from captives.
Entitled "Collection of Data from Property and Casualty Insurers for Reports Concerning the Terrorism Risk Insurance Program, Treasury said the changes to the existing forms are required in support of the administration of the Terrorism Risk Insurance Program (Program) to obtain more detailed information in two general areas.
The first of these is captive insurers; the second relates to cyber insurance.
There are two general categories of material changes to the proposed reporting templates for 2022 – one that applies solely to captive insurers, and the second that applies to the cyber worksheet, which is contained in all templates and is to be completed by all participating insurers that write cyber insurance.
Treasury's advisory committee in connection with the Program, the Advisory Committee on Risk-Sharing Mechanisms, recommended in 2020 that Treasury evaluate the manner in which captive insurers access the Program in order to ensure that the risk-sharing principles underlying the Program are being met. In furtherance of that goal and Treasury's administration of the Program, Treasury has proposed to require more detailed information concerning the terrorism risk insurance subject to the Program written by captive insurers as well as the insurance they provide more generally.
The proposed changes for captive insurers will require them to report much of the same information as previously, but to segment it in more detail.