Mr. Sinnott said in October and November when he gave testimony before House and Senate committee hearings he "would have bet something was going to come out" of Congress. Since then, the matter has become hung-up over the question of lawsuit limits and general tort reform.

"Now it is hard to assess where it is going," Mr. Sinnott said, adding that he has become a little skeptical about passage.

He said the matter has come up again and the Bush administration is supporting legislation.

However, he said failure to pass such a plan would not have great implication for his company. Terrorism coverage is available on a limited basis. Mr. Sinnott said the firm can write coverage of up to $300-to-$400 million. But for clients who are considered targets of terrorism, such as high-rise buildings, it can "price itself out of most client's view," Mr. Sinnott observed.

He emphasized that any legislation would be viewed as a temporary measure, adding "we do not like government in our business." As a matter of security, Mr. Sinnott said, this is a viable measure for the government to involve itself in.

In his general assessment of the insurance market, Mr. Sinnott noted that the current hard market cycle is very different from the mid-1980's because it is occurring across all lines of business, instead of a crisis in directors and officers insurance and excess liability.

Clients would probably see more modest increases in the second round of renewals, but the solutions to this hard market are "deeper and more complex" than in the 1980's, he said.