New York--Representatives of a major brokerage, a brokers' association and an insurer appealed to corporate insurance buyers to involve themselves in the campaign for extension of the Terrorist Risk Insurance Act (TRIA).

"TRIA update and Strategies for Managing the Uncertainty," which took place here today, was sponsored by Marsh. As well as Marsh experts, speakers included Scott Sinder, general counsel for the Council of Insurance Agents and Brokers and Richard G.M. Marko Sr., vice president and manager, national market strategic services with Liberty Mutual Group.

"From a consumer standpoint, I doubt there is anyone out there who would say to just let it [TRIA] expire," John T. Sinnott, MMC vice chairman, office of the chief executive officer, told a packed audience of Marsh brokers and clients.

If TRIA is not renewed, he said, "We're back to square one. We'll be looking at the same difficulties with clients that have large aggregations on the workers' comp side, or those that have so-called target property risks or are located in particular geographic areas."

But the main issue without TRIA, said Mr. Sinnott, is availability. "All we're asking for is to allow our clients to have availability to transfer their risk."

He added that lack of availability affects capacity, coverage and "yes it affects cost, although I don't emphasize the cost issue because it's not the real issue." However, he said, some not in favor of a federal backstop will emphasize cost.

September's Hurricane Katrina losses by insurers, Mr. Sinnott said, are an added factor in a general market tightening causing carriers to withdraw from the property market. He said Endurance Specialty Holdings of Bermuda and excess and surplus lines carrier James River, Richmond, Va. were companies that recently dropped the line.

He recommended creating a mechanism that pushes the government further and further from the risk. He added that the insurer community is not in-sync because insurers have different issues and different balance sheet imperatives.

Mr. Sinnott said the federal government needs to be involved because although the government can't prevent hurricanes or earthquakes, "it's the government's responsibility to secure our borders." He said many corporations are doing their part and have upped their security significantly since 2001.

He urged his audience to lobby their lawmakers for the measure saying, "There is nothing like Congress hearing directly from consumers, this has a big impact in Washington."

Congress has until Dec. 31 before the current TRIA measure expires. "The bad news would be no bill," CIAB's Mr. Sinder said. "The worst news would be no extension. The key now is policyholder involvement."

He advised insurance buyers to contact industry political representatives in their state, adding that one of the most effective ways to be heard is to work with an organization such as CIAB, the Risk and Insurance Management Society, Inc., or the Chamber of Commerce.

Mr. Sinder said that recent events could prove to be a distraction, taking the focus away from TRIA. Those include the resignation of Justice Sandra Day O'Connor, landfall of Hurricane Katrina, the death of Supreme Court Judge William Rehnquist, and landfall of Hurricane Rita.

Mr. Sinder explained that former House Majority Leader Rep. Tom DeLay, R-Texas, still "is the key" to TRIA, "understands the need" for TRIA and approves, but wants a resolution.

But, Mr. DeLay, he noted, does not want to "keep adding extensions" on to TRIA and does not believe responsibility for the coverage ultimately lies with the federal government.

Jill Dalton, Marsh managing director, property and International Practice, New York Metro zone, said Marsh's data, which regularly tracks renewals, currently shows that insurers' quotes are delayed; underwriting authority chains of command are changing and faith in modeling is shaken.

This means, Ms. Dalton said, that there is more adherence to catastrophe models for pricing, limits and attachments and capacity is reduced. She also noted that energy markets have been heavily hit, which could mean rate increases up to 50 percent.

Paul D. McVey, Marsh managing director for global property claims noted that "there will be a lot of litigation" in the wake of Hurricane Katrina and that many difficult issues must be decided. He said that insurers are looking at each case individually.

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