Notice2024-27640
Agency Information Collection Activities, Proposed Collection, and Comment Request; Terrorism Risk Insurance Program-Data Collection Forms
Primary source
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Published
November 26, 2024
Issuing agencies
Treasury Department
Abstract
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.
Full Text
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<title>Federal Register, Volume 89 Issue 228 (Tuesday, November 26, 2024)</title>
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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 [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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: <a href="https://www.regulations.gov">https://www.regulations.gov</a>, 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 <a href="https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/annual-data-collection">https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/annual-data-collection</a>.
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, <a href="https://www.bls.gov/iag/tgs/iag524.htm#earnings">https://www.bls.gov/iag/tgs/iag524.htm#earnings</a>. 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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</html>Indexed from Federal Register on November 26, 2024.
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