The U.S. Department of the Treasury and the National Science Foundation (NSF) have launched a collaborative initiative to advance research and thought leadership in insurance risk modeling and underwriting. This partnership aims to address the complex challenges posed by terrorism and catastrophic cyber risks, ensuring the stability and resilience of the insurance sector.
The collaboration is part of a broader effort to strengthen the Terrorism Risk Insurance Program (TRIP) which plays a crucial role in providing a safety net for the insurance industry against large-scale threats. By fostering innovation and leveraging cutting-edge research, the initiative seeks to develop robust models that can accurately assess and mitigate risks associated with terrorism and cyber incidents.
The Role of the Industry-University Cooperative Research Center
The Industry-University Cooperative Research Center (IUCRC) is at the forefront of this initiative, bringing together academia, industry, and government to tackle pressing issues in insurance risk management. The IUCRC’s Dear Colleague Letter outlines the call for proposals focused on terrorism risk insurance and catastrophic cyber risks, encouraging researchers to submit innovative solutions and thought leadership.
This collaborative approach ensures that the latest advancements in research are translated into practical applications, benefiting both the insurance industry and consumers. By fostering a dynamic exchange of ideas, the IUCRC aims to create a more resilient and adaptive insurance landscape.
Key Reports and Initiatives
Over the years, the U.S. Treasury has published a series of comprehensive reports that provide valuable insights into the effectiveness of the Terrorism Risk Insurance Program. These reports, such as the 2026 Report on the Effectiveness of the Terrorism Risk Insurance Program and the 2026 FIO Preemption Report offer a detailed analysis of the program’s impact and identify areas for improvement.
Additionally, the Treasury has conducted extensive studies on various aspects of the insurance market, including the 2026 Study of Small Insurer Competitiveness in the Terrorism Risk Insurance Marketplace and the Report on Personal Auto Insurance Markets and Technological Change. These studies highlight the evolving dynamics of the insurance industry and the need for adaptive strategies to address emerging risks.
Global Engagement and Regulatory Forums
The U.S. Treasury actively engages in global insurance regulatory forums to ensure that the insurance sector remains competitive and resilient. Reports such as Engagement in Global Insurance Regulatory or Supervisory Forums in 2026 and the Impact of the International Insurance Capital Standard on Consumers and Markets in the United States provide a comprehensive overview of the Treasury’s efforts to promote international cooperation and regulatory harmony.
By participating in these forums, the Treasury aims to foster a collaborative environment that enhances the stability and efficiency of the global insurance market. This proactive approach ensures that the U.S. insurance industry remains at the forefront of innovation and risk management.
Annual Data Collection and Reporting
Under Section 111 of the Terrorism Risk Insurance Program Reauthorization Act of 2015 the Treasury is required to collect annual data relating to the effectiveness of the program. This data is crucial for informing the reports submitted to Congress and ensuring the program’s continued success.
Prior to 2018, the Treasury and state insurance regulators separately collected data concerning terrorism risk insurance. However, beginning in 2018, a consolidated collection approach was developed in collaboration with the National Association of Insurance Commissioners (NAIC). This streamlined process allows companies subject to both data calls to submit the same information to both the Treasury and state insurance regulators, enhancing efficiency and accuracy.
The 2026 TRIP Data Call Reporting Portal is now open to receive registrations, with participating insurers required to submit complete data forms no later than May 15, 2026. This data is essential for assessing the program’s effectiveness and identifying areas for improvement.
Insurers are required to report data on a group basis using the appropriate reporting template, with specific guidelines provided for non-small insurers, small insurers, captive insurers, and alien surplus lines insurers. The Treasury has also created comprehensive resources, including training webinars and sample fact patterns, to support insurers in the data submission process.
By leveraging the latest research and data, the U.S. Treasury and NSF are paving the way for a more resilient and adaptive insurance sector. This collaborative effort ensures that the insurance industry remains well-equipped to address the evolving challenges of terrorism and catastrophic cyber risks.
