International Services Surveys: BE-140 Benchmark Survey of Insurance Transactions by U.S. Insurance Companies With Foreign Persons
Final rule.
CFR Part: "15 CFR Part 801"
RIN Number: "RIN 0691-AA88"
Citation: "84 FR 27197"
Document Number: "190225160-9484-01"
Page Number: "27197"
"Rules and Regulations"
Agency: "
SUMMARY: This final rule amends regulations of the
DATES: This final rule is effective
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: On
This final rule amends 15 CFR part 801 to set forth the reporting requirements for the
A response is required from persons subject to the reporting requirements of the BE-140, whether or not they are contacted by BEA, to ensure complete coverage of transactions in insurance services between
In 2012, BEA established regulatory guidelines for collecting data on international trade in services and direct investment (77 FR 24373;
The benchmark survey covers the universe of insurance transactions by
The benchmark data, which includes data from respondents not subject to filing on an ongoing quarterly basis, will be used, in conjunction with quarterly data collected on the companion BE-45 survey, to produce estimates of insurance transactions for BEA's international transactions accounts (ITAs), national income and product accounts, and industry accounts. These data are also used to monitor
A full list of the insurance transactions covered by the BE-140 survey can be found in the regulatory text for new
Description of Changes
This final rule amends the regulations at 15 CFR part 801 by adding new
BEA adds and modifies some items on the benchmark survey form. The following items are added to the benchmark survey:
(1) Mandatory questions to request additional information from respondents that have direct insurance sales and/or losses. Additional questions, applicable to reporters of direct insurance transactions on Schedule B of the survey, will be added to request an estimate of what percentage of these transactions were: (1) Life insurance, (2) freight insurance, and (3) other direct insurance. To avoid imposing undue reporter burden, the estimates will be requested based on the reporter's knowledge of the
(2) A new schedule to collect information related to catastrophic losses from hurricanes and other significant natural disasters. The 2018 BE-140 survey will collect information from reporters for a sample of up to 5 catastrophic events that took place during 2018. Catastrophic events include events such as hurricanes, earthquakes, and wildfires, etc. The new schedule is structured to collect data on the loss amount, type of loss (assumed or ceded), the country of the foreign counterparty, the relationship to the foreign counterparty (foreign affiliate, foreign parent group, or unaffiliated), and the date for each event/transaction.
In addition, this final rule makes the following modifications to items collected on the previous BE-140 survey form:
(1) Lowering the threshold for reporting large, infrequent reinsurance transactions. On the 2013 BE-140 benchmark survey, the threshold for reporting these transactions was
(2) Modifying mandatory Schedule C to collect additional information regarding the expected average maturity of reserves that are transferred and included in the premiums reported on the survey. Information about reserve transfers will be collected for the large, infrequent reinsurance transactions collected at a threshold of
In addition, BEA has redesigned the format and wording of the survey. The new design incorporates improvements made to other BEA surveys. Some enhancements are the result of a recent cognitive review conducted with selected survey respondents during the planning for the 2017
Change to the Regulatory Text of the Proposed Rule
BEA received no comments on the proposed rule. We note that we have made a change to paragraph (f), entitled "Due date", in new
Executive Order 12866
This final rule has been determined to be not significant for purposes of E.O. 12866.
Executive Order 13132
This final rule does not contain policies with federalism implications sufficient to warrant preparation of a federalism assessment under E.O. 13132.
Paperwork Reduction Act
The collection-of-information in this final rule was submitted to the
Notwithstanding any other provisions of law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the PRA unless that collection displays a currently valid OMB control number.
The BE-140 survey is expected to result in the filing of reports from approximately 1,300 respondents. Approximately 1,000 respondents will report mandatory data on the survey, and approximately 300 will file exemption claims. The respondent burden for this collection of information will vary from one respondent to another, but is estimated to average (1) 9 hours for the 600 respondents that file mandatory or voluntary data by country and affiliation for relevant transaction types on the mandatory schedules; (2) 2 hours for the 400 respondents that file mandatory data by transaction type but not by country or affiliation; and (3) 1 hour for other responses. These burden-hour estimates consider time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Thus the total respondent burden for this survey is estimated at 6,500 hours, or 5 hours per response (6,500 hours/1,300 respondents), compared to 4,689 hours, or about 4.5 hours per response (4,689 hours/1,042 respondents) for the previous BE-140 benchmark survey in 2013. The increase in burden hours is due to an estimated increase in the size of the respondent universe from 2013 to 2018, as well as changes to the content of the survey.
Written comments regarding the burden-hour estimates or other aspects of the collection-of-information requirements contained in the final rule should be sent to both BEA via email at [email protected] and to OMB, O.I.R.A.,
Regulatory Flexibility Act
The Chief Counsel for Regulation,
List of Subjects in 15 CFR Part 801 Economic statistics, Foreign trade, International transactions, Penalties, Reporting and recordkeeping requirements.
Dated
Associate Director of International Economics,
For reasons set forth in the preamble, BEA amends 15 CFR part 801 as follows:
PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN
1. The authority citation for 15 CFR part 801 continues to read as follows:
Authority:5 U.S.C. 301; 15 U.S.C. 4908; 22 U.S.C. 3101-3108; E.O. 11961 (3 CFR, 1977 Comp., p. 86), as amended by E.O. 12318 (3 CFR, 1981 Comp. p. 173); and E.O. 12518 (3 CFR, 1985 Comp. p. 348).
2. Revise
Except for surveys subject to rulemaking in [Sec.]
(a) Notice of specific reporting requirements, including who is required to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be published by the Director of the
(b) In accordance with section 3104(b)(2) of title 22 of the United States Code, persons notified of these surveys and subject to the jurisdiction of
(c) Persons not notified in writing of their filing obligation by the
3. Add
(a) Response required. A response is required from
(1) Completing and returning the BE-140 by the due date of the survey; or
(2) If exempt, by completing the determination of reporting status section of the BE-140 survey and returning it to BEA by the due date of the survey.
(b) Who must report. A BE-140 report is required of each
(c) What must be reported--(1) Transactions exceeding
(2) Transactions
(i) Voluntary reporting of insurance transactions. If, during calendar year 2018, total transactions were
(ii) [Reserved]
(3) Exemption claims. Any
(d) Covered types of insurance services. Insurance services covered by the BE-140 survey consist of transactions between
(1) Premiums earned on reinsurance assumed from companies resident abroad;
(2) Losses incurred on reinsurance assumed from companies resident abroad;
(3) Premiums paid for reinsurance ceded to companies resident abroad;
(4) Losses recovered on reinsurance ceded to companies resident abroad;
(5) Premiums earned from direct insurance sold to foreign persons;
(6) Losses incurred on direct insurance sold to foreign persons;
(7) Receipts for auxiliary insurance services provided to foreign persons; and
(8) Payments for auxiliary insurance services provided by foreign persons.
(e) Types of transactions excluded from the scope of this survey. Premiums paid to, or losses received from, foreign insurance companies on direct insurance.
(f) Due date. A fully completed and certified BE-140 report, or qualifying exemption claim with the determination of reporting status section completed, is due to be filed with BEA not later than
[FR Doc. 2019-12373 Filed 6-11-19;
BILLING CODE 3510-06-P
Rep. Waters Introduces National Flood Insurance Program Reauthorization Act
Nationwide Mutual Insurance: National Take Your Dog to Work Day is June 21
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News