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7/1/2021

Treasury’s Federal Insurance Office Releases Study of Small Insurer Competitiveness in the Terrorism Risk Insurance Ma…

Treasury’s Federal Insurance Office Releases Study of Small
Insurer Competitiveness in the Terrorism Risk Insurance
Marketplace
June 30, 2021

WASHINGTON – The U.S. Department of the Treasury’s Federal Insurance O ice (FIO) today
released a report entitled “Study of Small Insurer Competitiveness in the Terrorism Risk
Insurance Marketplace” (Study). The Terrorism Risk Insurance Act of 2002, as amended
(TRIA), requires FIO to conduct and release the Study every other year.
The Study analyzes data that was collected by Treasury concerning the participation of
insurers in the Terrorism Risk Insurance Program (TRIP). TRIA established TRIP, which
requires insurers to make terrorism risk coverage available within certain lines of commercial
insurance. To assist insurers with the resulting potential financial exposure, certain
insurance losses are eligible for reimbursement through TRIP if they result from an “act of
terrorism” as defined by TRIA and certified as such by the Secretary of the Treasury. The
Study finds that small insurers are significant participants in the market for terrorism risk
insurance in the United States, with a stable market share over the past few years that
remains characterized by a lower charge for terrorism risk insurance than assessed by larger
insurers. The Study also notes that small insurers may continue to face some challenges
related to the Program Trigger under TRIP and the purchase of commercial reinsurance to
address exposures not backstopped by TRIP.
FIO, which was established within Treasury by the Dodd-Frank Wall Street Reform and
Consumer Protection Act, monitors all aspects of the insurance sector, and assists the
Secretary in administering TRIP.
A copy of the Study is available

.

For more information visit FIO.
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https://home.treasury.gov/news/press-releases/jy0253

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7/1/2021

Treasury’s Federal Insurance Office Releases Study of Small Insurer Competitiveness in the Terrorism Risk Insurance Ma…

https://home.treasury.gov/news/press-releases/jy0253

2/2