Insurers that participate in the Terrorism Risk Insurance Program (TRIP), including captives, have been asked to submit information for the 2024 TRIP data call, which covers the reporting period from 1 January, 2023 to 31 December, 2023.
The Terrorism Risk Insurance Act (TRIA) was originally signed into law by President George W Bush in November 2002, and acts as a federal “backstop” for insurance claims related to acts of terrorism.
It is currently reauthorised through to 2027 and has been a catalyst for increasing numbers of US-domiciled captives to provide terrorism related coverage to their parent groups.
Participating insurers are required to register and report information in a series of forms approved by the Office of Management and Budget (OMB).
All insurers writing commercial property and casualty insurance in lines subject to TRIP, subject to certain exceptions, must respond to the data call no later than 15 May, 2024.
The data call relies on four joint reporting templates, to be completed by small insurers, non-small insurers, captive insurers, and alien surplus lines insurers.
For the 2024 TRIP Data Call, an insurer will qualify as a small insurer if it had both 2022 policyholder surplus of less than $1bn and 2022 direct earned premiums in TRIP-eligible lines of insurance of less than $1bn.
Of this group, small insurers with TRIP-eligible direct earned premiums of less than $10m in 2023 will be exempt from the 2024 TRIP data call, however this exemption is not eligible for captives.
Captive Insurers are defined as insurers licensed under the captive insurance laws or regulations of any state.
Captive insurers that wrote policies in TRIP-eligible lines of insurance during the stated reporting period are required to register and submit data to the Treasury, unless they did not provide any terrorism cover.