The U.S. Treasury Departmentʻs Federal Insurance Office (FIO) issued its annual report on the insurance industry, which examines the industry’s performance and condition in 2021 as well as its outlook for 2022.
Among the topics, the report evaluated the expanded cyber insurance data collected pursuant to the 2022 changes to the annual Terrorism Risk Insurance Program TRIP data call. It found that detailed information concerning cyber insurance coverage written by insurers that are subject to TRIP will help FIO better evaluate the program’s response to cyber-related incidents.
In addition, FIO issued a request for information to solicit public comments on a potential federal insurance response to catastrophic cyber incidents. The comments will inform FIO’s work in responding to a recommendation by the U.S. Government Accountability Office. The GAO said the FIO and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency should assess the risks to U.S. critical infrastructure from catastrophic cyberattacks and whether a federal insurance response is warranted.
“The Federal Insurance Office’s annual report is an important analysis of the U.S. insurance markets and related issues that may impact financial stability,” U.S. Assistant Secretary for the Treasury for Financial Institutions Graham Steele said. “Consistent with the U.S. Government Accountability Office’s recommendation, we look forward to receiving stakeholder input from this request for information on a potential federal insurance response to catastrophic cyber incidents.”
Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, FIO is required to report annually to the President and Congress on the state of the insurance industry.