To make matters worse, market tightening has migrated from the most hurricane-prone Southern states to many East Coast areas–including New York and New England–and it hasn't stopped there. In the last renewal season, higher rates were reported in earthquake-prone areas as well.

The market dislocation caused by Hurricane Katrina has punctuated the need for more coverage options for risk managers, and expanding the ART market is a logical solution.

The use of RRGs has proven successful for medical malpractice coverage for physicians, nursing homes and hospital groups, a market for which coverage is often tight and expensive. RRGs could do the same trick for property owners.

So why has this seemingly sensible move taken so long to get this far, and will it ever be a reality?

Several associations over the years have lobbied for LRRA expansion. In fact, one group–the Coalition of Alternative Risk Funding Mechanisms–was formed exclusively to tackle issues such as this. But CARFM was disbanded for lack of support, and other groups continue to work solo. What they need to do is band together to generate a stronger voice.

As compelling as the idea is to allow RRGs to write property coverage, the unwillingness of some ART associations to work together has probably been the biggest holdup. One source in Washington, D.C., affirmed that this disunity is–and has long been–a major drawback to being taken seriously on Capitol Hill.

What's worse is that as much as the insurance industry is misunderstood–as we've witnessed in the debate to renew the Terrorism Risk Insurance Act–there is even less understanding and more suspicion of RRGs.

So while LRRA's expansion seems like a no-brainer, and could do much good for commercial insurance buyers, passage of an RRG expansion bill remains problematic. What is needed now is no different than what's been lacking all along. The ART associations should put aside jealousy and competitive considerations and work together for the good of all.

But it doesn't stop there, as risk managers also are an important part of the equation. Instead of waiting for RIMS, ARRC, the National Risk Retention Association and the Vermont Captive Insurance Association to get the deed done, risk managers need to let their associations know this is important to them, and do what they can on their own to see that it become a reality by contacting their representatives in Congress.

After all, risk managers would be the bottom-line beneficiaries of LRRA expansion. For them, it would mean more property coverage options, as well as greater flexibility and control.

So, what are you waiting for?