IMARA Calculation for Calendar Year 2021 Under the Terrorism Risk Insurance Program
Agency: "
SUMMARY:
DATES: The IMARA for calendar year 2021 is effective
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SUPPLEMENTARY INFORMATION:
I. Background TRIA--which established TRIP--was signed into law on
FOOTNOTE 1 Public Law 107-297, sec. 101(b), 116 Stat. 2322, codified at 15 U.S.C. 6701 note. Because the provisions of TRIA (as amended) appear in a note instead of particular sections of the
FOOTNOTE 2 See Terrorism Risk Insurance Extension Act of 2005, Public Law 109-144, 119 Stat. 2660; Terrorism Risk Insurance Program Reauthorization Act of 2007, Public Law 110-160, 121 Stat. 1839; Terrorism Risk Insurance Program Reauthorization Act of 2015, Public Law 114-1, 129 Stat. 3 (2015 Reauthorization Act); Terrorism Risk Insurance Program Reauthorization Act of 2019, Public Law 116-94, 133 Stat. 2534. END FOOTNOTE
FOOTNOTE 3 31 U.S.C. 313(c)(1)(D). END FOOTNOTE
TRIA provides for an "industry marketplace aggregate retention amount" or "IMARA" to be used for determining whether
FOOTNOTE 4 See TRIA, sec. 103(e)(7); see also 31 CFR part 50 subpart J (Recoupment and Surcharge Procedures). END FOOTNOTE
TRIA provides for a schedule of defined IMARA values for calendar year 2015 through calendar year 2019. /5/ For calendar year 2020 and beyond, TRIA states that the IMARA "shall be revised to be the amount equal to the annual average of the sum of insurer deductibles for all insurers participating in the Program for the prior 3 calendar years," as such sum is determined pursuant to final rules issued by the Secretary. /6/
FOOTNOTE 5 In 2015, the IMARA was
FOOTNOTE 6 TRIA, sec. 103(e)(6)(B)(ii) and (e)(6)(C). An insurer's deductible under the Program for any particular year is 20 percent of its direct earned premium subject to the Program during the preceding year. TRIA, sec. 102(7). For example, an insurer's calendar year 2020 Program deductible is 20 percent of its calendar year 2019 direct earned premium. END FOOTNOTE
On
FOOTNOTE 7 84 FR 62450 (
Accordingly, for purposes of determining the IMARA for calendar 2021,
FIO's 2020 Report on the Effectiveness of the Terrorism Risk Insurance Program /8/ identified the DEP amounts participating insurers reported to
FOOTNOTE 8 FIO, Report on the Effectiveness of the Terrorism Risk Insurance Program (
TRIP-Eligible DEP by Insurer Category fn9 2018 TRIP data call 2019 TRIP data call 2020 TRIP data call 2017 DEP in % of Total 2018 DEP in % of Total 2019 DEP in % of Total TRIP-eligible TRIP-eligible TRIP-eligible lines lines lines Alien Surplus Lines Ins.$ 9,492,933,571 5$ 7,618,548,358 4$ 11,149,972,542 5 Captive Insurers 9,052,630,571 4 8,937,119,082 4 9,083,384,310 4 Non-Small Insurers 163,891,791,592 80 166,188,192,378 81 172,970,757,331 80 Small Insurers 21,806,195,201 11 22,516,178,612 11 22,882,139,290 11 Total 204,243,550,936 100 205,260,038,430 100 216,086,253,473 100 Source: 2018-2020 TRIP Data Calls.
FOOTNOTE 9 The figures from the 2019 and 2018 TRIP data calls (some figures may not add up on account of rounding) were previously reported in the IMARA calculation for calendar year 2020. See 84 FR 69462 (
FOOTNOTE 10 See note 6. END FOOTNOTE
Dated:
Director, Federal Insurance Office.
Notice.
Citation: "85 FR 83159"
Federal Register Page Number: "83159"
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