Although one prominent Washington official warned last week that federal regulation of insurance is unlikely next year, and that optional federal charters may be off the table, industry leaders gathered here said the mood in Congress–given the country's financial troubles–indicates some form of national oversight has become a matter of "when," rather than "if."

Unaware of the discouraging background briefing given by the chair of the Federal Deposit Insurance Corp., Sheila Bair, to directors of the American Insurance Association on Nov. 14 (reported by National Underwriter on page 6 of this edition), those speaking at the 20th Annual Executive Conference for the Property-Casualty Industry–produced by The National Underwriter Company, and sponsored by Ernst & Young and Dewey & LeBoeuf–said they expect Uncle Sam to step in and oversee insurance at some point.

Stanley A. Galanski, president and chief executive officer at The Navigators Group, said the pace towards federal regulation is fast, comparing the current environment in Congress to the mood just before Sarbanes-Oxley requirements on financial reporting was passed in response to Enron's collapse.