He added that "right now, TRIA is TRIA. It is set to expire Dec. 31. That's a real deadline. Let's get TRIA renewed in some form."

Mr. Csiszar said a discussion on the need for an integrated approach to major catastrophe must take place over the next 18 months. Hurricane Katrina, he noted, pointed out that "there is a patchwork of coverages. I can't think of any major area in the U.S that doesn't have exposure to a potential catastrophe. That is why a more integrated approach is required."

Likely to fall by the wayside because of the preoccupation with extending TRIA is any action on regulatory reform, industry officials say privately. Specifically, even an introduction of the State Modernization and Regulatory Transparency Act (SMART), being drafted by the staff of the House Financial Services Committee, is unlikely this year.

According to one industry lobbyist, "SMART's dead for the year." He added, "Maybe we get a hearing, maybe a bill introduction, but that's it." Moreover, he added, "I think the [life Optional Federal Charter] coalition has been hitting a brick wall on finding quality sponsors in the Senate beyond that of Sen. John Sununu, [R-N.H.]," the lobbyist said.

The industry has decided to focus on renewing TRIA because of intense pressure from conservatives to shut it down. This is supported by the White House, according to sources, though the Treasury Department report calls for narrow legislation aimed at getting the federal government out of the terrorism reinsurance business completely within two years.

Draft legislation on a TRIA extension shown to lobbyists by the Republican staff of the House Financial Services Committee has also brought industry attention.

The primary House proposal calls for extension of the current program over two years with far higher deductibles, retention levels and even triggers. That approach will call for the government to end its backstop after the new program expires Dec. 31, 2007.

The proposal calls for adding group life and deleting some property-casualty coverages, such as commercial auto and general liability.

David Winston, top Washington lobbyist for the National Association of Mutual Insurance Companies said that "getting TRIA extended beyond its expiration at the end of this year is the industry's top legislative priority."

Alluding to industry disappointment with draft legislation coming out of the House Financial Services Committee, Mr. Winston said NAMIC "would be supportive of a short-term extension that contains some reasonable modifications to the existing program to decrease government involvement and taxpayer exposure."

At the same time, Democrats clearly stated in late July that they would not support extending TRIA in an "emasculated form" for a short period. One spokesman for a top Democrat said last Thursday this policy remains for Democrats on the committee.

Asked if Hurricane Katrina changed the equation for members of the Senate Banking Committee, a spokesman for Sen. Richard Shelby, R-Ala., said "Sen. Shelby's perspective is that any extension of TRIA should be narrow, targeted and minimize interference with our markets."

He added that, "We are focused specifically on TRIA."

Julie Rochman, a spokesman for the American Insurance Association, said renewal of TRIA is the AIA's "top priority" for the current session of Congress, and that it "anticipates quick action," noting that Senate Majority leader Bill Frist, R-Tenn., "recently said he supported quick action."

Ms. Rochman cautioned, "I don't think people should assume there will be drastic cuts in the scope of the program." She explained that there are "perfectly good reasons the lines in the program are in there to begin with."

She said the AIA's concern is that if lines that are currently in TRIA are removed from the program, such as commercial auto and commercial general liability, "that will be a very bad public policy decision." She explained that "commercial auto contributes a lot in terms of premium dollars, but not a lot of risk." Removing the line does not similarly reduce the aggregate dollar amount insurers are on the hook for, she said.