Industry Issues | Surplus Lines Reform

2018 Proposed TRIA Data Calls – Reconciliation Between State and Federal

PCI Members (LGA: Federal Affairs Subcommittee, Liability Committee, Property Committee, Surplus Lines Committee, TRIA Committee, Workers Compensation Committee)

PCI met with the Federal Insurance Office (FIO) on November 8, 2017 via conference call to discuss the 2018 proposed TRIA Data Call. Significant progress has been made regarding the dueling state and federal data calls.

With one significant exception, the 2018 data call will be consolidated, meaning that the same templates will be used for both the federal and state data calls. The 2017 Treasury templates will be used (with relatively minor tweaks), which call for reporting by group, not by operating entity. Insurers will be required to separately submit the templates to the Treasury and New York portals. The one major exception is that insurers will be required to submit detailed property information including zip code level detail by company for the state data call.

Following are the key points based on current understanding:

  • The federal and state data calls will be using the same four separate templates for the collection of data as were used in the 2017 federal data call, depending upon the nature and size of the insurer's operations. Separate templates were developed as follows: (1) small insurers (as defined) (2) larger insurers not meeting the small insurer definition; (3), alien surplus lines insurers; and (4) captive insurers.
  • The definition for small insurers remains the same: (1) policyholder surplus for the immediately preceding year is less than five times the Program Trigger amount for the current year: and (2) TRIP-eligible lines direct earned premium for the previous year is less than five times the Program Trigger amount. Captive insurers and alien surplus lines insurers are not included in the small insurer definition for purposes of the data call. For the 2018 data collection,  a small insurer will be one that had policyholder surplus and direct earned premium of less than $700,000,000 (or five times the 2017 Program Trigger of $140,000,00). To the extent a small insurer had less than $10,000,000 direct earned premium in TRIA-eligible lines in calendar year 2017, such insurer will not be required to respond to the 2018 federal data call. It is not clear what the reporting requirements will be for such insurers at the state level.
  • NCCI will continue to provide data on workers compensation for both the state and federal data call.

Following are other proposed changes:

  • There will be a new Standalone Cyber Template like the Standalone Terrorism Template that was used in both the 2017 and 2016 TRIA data call.
  • The question posed last year asking for maximum probable loss for a specified type of terrorist event will be revised to ask about a different type of event. 

The timeline for the federal data call is as follows:

  1. Proposed federal data call requirements are targeted to be in the Federal Register before Thanksgiving with a 60-day comment period. After the comment period, the OMB requires a 30-day review.
  2. Final requirements will be released late in February or early March.
  3. The announcement on the state TRIA Data call is anticipated at roughly the same time as the federal data call is announced. 
  4. The due date for the federal data call is May 15th; we have not received confirmation on the due date for the state data call.

Once the data call requirements are announced in the Federal Register and by the states, PCI will provide them to members and will then hold a member call to solicit comments. In the meantime, please feel free to contact us if you have any questions.