If TRIA is not renewed before its scheduled Dec. 31 expiration, warned Mr. Sinnott, "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."

Finding coverage for terrorism risks without the federal reinsurance backstop provided by TRIA will be far more difficult, if not impossible, added Mr. Sinnott. "All we're asking for is to allow our clients to have availability to transfer their risk," he said.

Lack of reinsurance availability if TRIA expires will limit capacity and coverage for buyers, as well as affordability, he noted. "Yes, it affects cost, although I don't emphasize the cost because it's not the real issue," he said, adding that cost might be irrelevant if reinsurance disappears, taking the primary market along with it.

September's Hurricane Katrina losses, noted Mr. Sinnott, 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, of Richmond, Va., were companies that recently dropped the line.

He recommended creating a mechanism that pushes the government further and further from terrorism risk over the long term. He added that the insurer community is not in sync on the issue because carriers have different issues, exposures and balance sheet imperatives.

Mr. Sinnott said Washington needs to be involved for now because while the government can't prevent hurricanes or earthquakes, "it's the government's responsibility to secure our borders" against terrorist attacks. He said many corporations are doing their part and have tightened their security significantly since the attacks on the World Trade Center and the Pentagon on Sept. 11, 2001.

He emphasized the importance of risk managers and other corporate insurance buyers lobbying their lawmakers for TRIA extension. "There is nothing like Congress hearing directly from consumers. This has a big impact in Washington," he said.

The clock is ticking on expiration, and there is no consensus in Congress on whether to extend TRIA--or how radically to modify its provisions if it is extended.

"The worst news would be no extension," said Scott Sinder, general counsel for the Council of Insurance Agents and Brokers in Washington. "The key now is policyholder involvement."

Mr. Sinder advised corporate 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 or the Chamber of Commerce, which can better coordinate joint lobbying efforts to focus legislator attention.

Mr. Sinder said that recent events could prove to be a distraction, taking the focus away from TRIA. These include the replacement of Supreme Court Justice Sandra Day O'Connor, the aftermath of Hurricanes Katrina and Rita, as well as political problems in Congress and the White House.

For example, Mr. Sinder explained that former Speaker of the House Tom DeLay, R-Texas, remains "the key" player on TRIA extension, despite controversy over his recent indictment for alleged campaign finance violations. Rep. DeLay "understands the need" for TRIA but wants a long-term resolution rather than just added extensions, believing that responsibility for terrorism coverage should not ultimately lie with the federal government.

Jill Dalton, Marsh managing director for property and international practice in the New York Metro zone, said Marsh's data, which regularly tracks renewals, shows that insurer quotes are being delayed due to recent catastrophe losses and looming terrorism exposures should TRIA expire.

As a result, according to Ms. Dalton, there is a tighter adherence to catastrophe models for pricing, limits and attachments, while capacity is being reduced. She also noted that energy markets have been heavily hit by the storm damage, 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 many difficult coverage issues remain to be decided. He said insurers are looking at each case individually.

"There is nothing like Congress hearing directly from consumers. This has a big impact in Washington."

John T. Sinnott, Vice Chairman

Marsh & McLennan Companies Inc.