News by sections

News by region
Issue archives
Archive section
Emerging talent
Emerging talent profiles
Domicile guidebook
Guidebook online
Search site
Features
Interviews
Domicile profiles
Generic business image for news article Image: Shutterstock

01 March 2017
Washington DC
Reporter Becky Butcher

Share this article





US Treasury issues first TRIPRA data call

The US Treasury will soon be issuing its first terrorism data call under the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) of 2015.

The treasury will use the collected data on the terrorism risk insurance market and report to Congress on its findings. All insurers need to submit their terrorism data no later than 15 May.

The data call will be used by Congress to evaluate TRIPA and decide whether “it is it is meeting its stated goals and objectives and is operating in an effective and efficient manner,” according to A.M. Best.

Some captives thought they could fall under the ‘small company’ exemption provision, however, many will be a part the process, along with other US-based insurers.

A.M. Best suggested that for rated captives, such as single-parent types, this request should be “straightforward” because they are a part of large organisations and have a wider range of resources.

For rated captives that use fronting relationships, data gathering should be a “relatively easy”, since the data being requested is their own proprietary data.

According to the rating agency, these captives are generally very strong risk managers in terms of knowing their risks, setting risk parameters and risk tolerances.

A.M. Best’s view is furthered by the captive’s purpose and the inherent nature of a captive, which serves as the risk manager of the group or enterprise. Captive managers also play a key role in the risk management process.

While captives are well equipped to handle the data request, it remains to be seen how the Treasury will respond to the data collected.

A.M. Best said: “An additional concern, whether for a rated captive or a traditional carrier, is the possibility of any potential changes in the government’s role if TRIPRA is extended beyond December 2020.”

“Regardless of the government’s involvement and additional demands through the recent data call, the need for an effective enterprise-wide risk management program remains paramount for all rated carriers.”

Subscribe advert
Advertisement
Get in touch
News
More sections
Black Knight Media