TRIPRA Terrorism Insurance Data Reporting Requirement

Section 111 of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) of 2015 requires the US Department of Treasury to collect data on the terrorism insurance market and report its findings to Congress by June 30 of every other year. The purpose of the report is to determine if TRIPRA is meeting its stated purpose.

According to an A.M. Best briefing from February 28, 2017, "U.S. Treasury Terrorism Data Call Nearing for Captive Insurers," the US Treasury Department will require all insurers, including captive insurers, to submit terrorism risk and insurance data by May 15, 2017.

The Treasury Department has developed four separate templates for the collection of data depending on the nature and size of the insurer's operations. Separate templates have been developed for insurers that fall within Treasury's "small insurer" definition, for larger insurers that are not within that definition, for alien surplus lines insurers, and for captive insurers. The form and instructions for completing it can be downloaded from the Treasury Department's Resource Center.

The ease of providing the information requested will depend upon the extent of the underwriting database maintained by the captive and its flexibility and ease of generating reports from the base. For example, a report is to provide exposure base data by line of coverage according to the following criteria as requested.

• Total 2016 property insurance exposure subject to terrorism risk coverage
• Total 2016 property insurance exposure not subject to terrorism risk coverage
• Total 2016 limits of liability subject to terrorism risk coverage
• Total 2016 limits of liability not subject to terrorism risk coverage
• Total 2016 payroll subject to terrorism coverage

Complying with the TRIPRA terrorism insurance data reporting requirement may require a considerable amount of preparation time for some, particularly for group captives. On the other hand, single-parent captives with full-time risk managers may find it less burdensome.

The other principal reporting areas are the following.

• Direct earned premium by jurisdiction and line of coverage
• Workers compensation deductible reimbursement
• Stand-alone terrorism
• Geographic exposures
• Reinsurance