TRIA Data Call In Development for 2016

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In light of the reauthorization of the Terrorism Risk Insurance Act (“TRIA”) earlier this year, a growing focus within the industry has been on the collection of data on terrorism risk exposure from insurers to help assess company solvency and market trends in light of particular changes to TRIA. As part of this effort, both the NAIC and the Federal Insurance Office (“FIO”) are proceeding to establish their own programs to collect relevant data, with the FIO specifically mandated to collect data pursuant to the Terrorism Risk Insurance Program Reauthorization Act of 2015 (the “TRIPRA Reauthorization Act”).

However, reports from earlier this month suggest that the FIO and NAIC are amenable to combining efforts in order to avoid redundant data calls and potential inaccuracies in dual reporting. In particular, industry leaders are hopeful that the NAIC and the FIO could create a single template for the collection of relevant terrorism-related data and to foster the sharing of information between the states and the U.S. Treasury Department. While the FIO is required by law to collect data by June 30, 2016, the NAIC is also particularly interested in analyzing the consequences of the TRIPRA Reauthorization Act which resulted in an increase of the required co-insurance to 20% from 15% and the doubling of the industry event trigger thresholds to $200 million. A hope held by many within the industry is that the goals of both the FIO and the NAIC can be accomplished through a single, unified data-collection system.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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