Federal government is requesting that insurers submit data concerning the Terrorism Risk Insurance Program
The U.S. federal government is requesting information from insurers participating in the Terrorism Risk Insurance Program. The insurance program was established in the wake of the 9/11 terrorist attacks in 2001 and was reauthorized in 2015 through 2020. The program is meant to serve as a financial backstop for insurers, allowing them to effectively mitigate the risks associated with acts of terrorism. While such acts are quite rare in the United States, insurers still face certain risks that could result in major financial losses.
Department of the Treasury will use data to create a new report to present to Congress
Per the Terrorism Risk Insurance Program, the Department of the Treasury is required to request that information be submitted by insurers participating in the program. This information is used to form a report that is then presented to Congress. This is the first time the federal agency is collecting information from insurers, but the Federal Insurance Office notes that insurers are not required to provide the government with the data it seeks. Despite this, the government is encouraging insurers to share data so that agencies can have the information they need to ensure that the terrorism insurance program is working as intended.
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Terrorism insurance program was formed to secure economic growth
The terrorism insurance program was formed to ensure that businesses had access to the insurance coverage that they need. The program is also meant to encourage economic growth by providing both businesses and insurers with a safety net. The availability of this insurance coverage may also secure new job opportunities for workers, as businesses feel more comfortable with their exposure to financial risks.
Information could help the Terrorism Risk Insurance Program perform better in the future
Information collected from insurers could be used to help improve the Terrorism Risk Insurance Program. This will depend on how well the program has been functioning, of course, and information from insurers may not be needed. Regardless of whether or not companies decide to share data with the federal government, the Terrorism Risk Insurance Program is set to be in place through 2020.