Federal and state legislative and regulatory issues, market trends, technology initiatives and the state of the industry post-Katrina took center stage at the closing general session of the Big "I" National Legislative Conference & Convention.

Big "I" CEO Robert A. Rusbuldt moderated the discussion. Joining Rusbuldt on the panel were Edward M. Liddy, Allstate chairman and CEO; Ramani Ayer, The Hartford Financial Services Group chairman and CEO; Paula Rosput Reynolds, Safeco Corporation president and CEO; Gary R. Gregg, Liberty Mutual Agency Markets president and CEO; and Michael Browne, Harleysville Insurance president and CEO.

Discussing TRIA, CEOs generally agreed on the need for a federal backstop for terrorism.

"NCBR [nuclear, chemical, biological, or radiological related terror events] are not insurable at any level," said Liddy. "It is war and needs to be picked up by the federal government."

"No TRIA is counterproductive to the safety and security of this country," agreed Ayer.

The leaders also took on the hot topic of state vs. federal regulation.

"The current system of state regulation is not effective," said Browne. "But federal regulation brings the possibility of something worse: more bureaucracy, less flexibility, less understanding. We need to move very slow when it comes to federal regulation."

Finally, the panel discussed the risks of writing in catastrophe prone areas.

"In the very near term, you have to pick your risks very carefully," said Reynolds. "We're trying to get a lot more selective at diversifying out of these areas. In an election year, you won't see it. We're on a several-year journey before companies like Safeco return to these areas."