The NAIC’s Accounting Practices and Procedures Task Force chose not to use its planned template for obtaining terrorism risk insurance data at the NAIC Summer National Meetings in Chicago this past weekend. The template was intended to establish a uniform means nationwide for insurers to submit data about the terrorism risk market.
The move followed a private meeting between NAIC members and the Federal Insurance Office (FIO). During that meeting, the FIO reportedly told NAIC members that it intended to create its own process for gathering information from carriers on the terrorism risk insurance market, instead of working with the NAIC to create a unified system.
Federal legislation reauthorizing the Terrorism Risk Insurance Act signed earlier in 2015 included language requiring the Treasury Department to gather data on the market, although existing regulations encourage federal agencies such as FIO to collaborate with state insurance departments where possible. FIO Director Michael McRaith told NAIC members at a commissioners’ roundtable meeting that the FIO intends to proceed with its own data collection process, which may be a precursor to more insurance regulatory activities by the federal government going forward. The NAIC will begin anew and seek to develop a new data collection template next year.