On Apr. 2, US Treasury sought comment on terrorism risk insurance.
US Treasury issued request for comments on issues FIO will be analyzing for study on the participation of small insurers in Terrorism Risk Insurance Program (31 CFR 50).
Regulations, which are made under Terrorism risk insurance act (Public Law 107-297).
Program Background
Address market disruptions for terrorism risk insurance, ensure continued availability and affordability of commercial property and casualty insurance for terrorism risk.
Private market stabilize, insurance capacity absorb future loss for terrorism events.
Secretary of Treasury administers Program, aid from Federal Insurance Office (FIO).
Request for Comments
Small insurer participation in program generally; particular issues on change to market share, premium volume, policyholder surplus of small insurers relative to large insurer.
Property and casualty insurance market for terrorism risk differences between small and large insurers, and whether such a difference also exists within other perils.
Impact of mandatory availability requirement under Section 103(c) of TRIA on small insurers; effect of increasing trigger amount for program under Section 103(e)(1)(B).
Availability, cost of private reinsurance for small insurers; impact that State workers' compensation laws on small insurers and workers' compensation carriers in space.
Role of small insurers in covering cyber-related acts of terrorism under the program, including any relevant developments in the cybersecurity insurance market.
Consultation
Comments on analysis for study of small insurers in program are due May 19, 2025.
Regulators
US Treasury
Entity Types
IB; Ins
Reference
90 FR 14522, 4/2/2025; TRIA; Citation: 31 CFR 50; Public Law 107-297;
