Concerns were voiced during the panel discussion by a number of attendees--including a representative of the company that owns the World Trade Center properties--that terrorism insurance, already hard to come by, will dry up if TRIA is allowed to sunset.

TRIA was only renewed for two years despite intense efforts by the insurance industry, as well as at-risk industries such as real estate, to have Congress commit to an ongoing "public/private partnership" that would ensure a federal terrorism insurance backstop for the foreseeable future.

"We believe TRIA or some variation of a TRIA-like backstop is also fundamental to the economic security and homeland security of the country," said Marylu Korkuch, vice president for federal affairs at the Chubb Group of Insurance Companies.

Ms. Korkuch, who moderated the panel discussion, announced Congress' intent to hold the joint hearing.

"In fact, we went so far as to propose that the House Financial Services Committee and the HouseHomeland Security Committee hold a joint hearing on the matter to underscore the fact that TRIA is not 'an insurance industry problem,'" she noted. "And guess what? We prevailed. I am delighted to tell you that Rep. Sue Kelly, [Rep.-N.Y.,] and Rep. Rob Simmons [R-Conn.] agreed to convene their respective subcommittees to consider the issue."

Rep. Kelly chairs the Oversight & Investigations Subcommittee, while Rep. Simmons heads the Intelligence, Information Sharing and Terrorism Risk Assessment Subcommittee.

The argument RIMS members were asked to take to their representative on Capitol Hill is that "economic security and national security are inextricably linked. Terrorist attacks affect both."

"The enduring, very real risk of catastrophic terrorist attacks on U.S. soil means that there is a continuing need for some form of national terrorism insurance mechanism beyond [the TRIA extension bill's] Dec. 31, 2007 expiration date," according to the "talking points" distributed to RIMS members to prepare them for their visits to Congress.

"Congress must act to ensure that the U.S. has an effective economic safety net in place beyond the end of 2007," RIMS urged its members to tell lawmakers.

Lack of planning for a terrorism attack could have a cascade effect on the entire U.S. economy, a U.S. Homeland Security official told attendees at the RIMS gathering. That makes prompt restoration of industrial production and service facilities in an area that suffers a terrorism attack important for the entire country, explained Jim Caverly, director of the Infrastructure Partnerships Division at the Homeland Security Department.

The implication, he said, is that a strong public/private partnership is critical to appropriate handling of a terrorism incident.

"Because redundancy has been removed from the U.S. economy, both private industry and government must respond more quickly" to lessen the impact of a terrorism event, he said, adding that "a terrorism attack provides risks similar to those of a nuclear attack."

As a result, he said, "it is more important than ever how you respond to a terrorism attack. What are your plans to deal with an interruption?" Indeed, he added, "you must do a good job of planning [for an attack], but should also look at how your partners will respond, such as your suppliers."

Leo Diaz, supply chain manager at United Parcel Service, said "just-in-time" policies--in which products and services are produced to order when required--gives terrorism a global, not only U.S. impact if key infrastructure or suppliers are damaged.

He added that this situation makes partnerships with government officials as well as suppliers important. "There must be a lot of planning and preparedness," he said. "Communication with local governments is also important."

Another panelist, Liz Gasster, general counsel of the Cyber Security Industry Alliance, cautioned that the likelihood of a "severe action" against a telecommunications provider is unlikely because it would require major planning by a sophisticated group.

However, she added, risk managers must be aware that an attack would create "major congestion," and that private risk managers should plan to coordinate with state and local governments, other private businesses, as well as with first responders in their area.