The Treasury Department is proposing a new rule that would make definitional changes to incorporate cyber coverage guidance in Terrorism Risk Insurance Program (TRIP) regulations.
Following the Sept. 11, 2001 attacks on the U.S., the Terrorism Risk Insurance Act was enacted to address market disruptions and “ensure the continued availability and affordability of commercial property and casualty insurance for terrorism risk, and to help private markets stabilize and build insurance capacity to absorb any future losses for terrorism events.” TRIP has been reauthorized and extended several times between 2005 and 2015, and most recently in December 2019.
In its proposal for rule change, Treasury is seeking comment on aligning certain dates in the program regulations with the 2019 Reauthorization Act, updating links to the program website on the regulations, addressing sources of risk and uncertainty reported by the Government Accountability Office, and making changes based on previous Treasury guidance on cyber coverage.
“In December 2016, Treasury issued interim guidance confirming that certain stand-alone cyber coverage written in a TRIP-eligible line of insurance was within the scope of the program, such that insurers were obligated to adhere to the ‘make available’ and disclosure requirements under TRIA for such coverage,” the request for comments said. “Treasury is proposing certain definitional changes to incorporate the cyber coverage guidance in the Program regulations.”
Comments on the proposed rulemaking are due 60 days after the Oct. 30 posting date of the notice.