The National Association of Professional Insurance Agents' newpresident said he believes the most pressing issue facing theinsurance industry and its customers today is finding a solution tocatastrophe coverage problems.

Robert Page, president of Charles A. Page & Sons InsuranceAgency in Houma, La., who was named president of the Alexandria,Va.-based association last month, said the greatest concern to himis finding an answer to providing affordable insurance to customersin catastrophe-prone areas of the nation.

Mr. Page said he believes the answer to this problem is havingthe federal and state governments and the private sector worktogether to create “some kind of mechanism that will allow peopleto afford to buy insurance.”

“We are at a point now, particularly in the coastal communitiesalong the Gulf and East Coast, where insurance is becoming moreexpensive than the mortgage payments on people's homes,” remarkedMr. Page.

There are a number of bills in Congress addressing this issue,he observed, and the association has set up a committee to reviewthat legislation. He said the idea would be to find the bestmeasures and put together a program that works to everyone'sbenefit.

“We want the private sector involved in this,” he said. “Theyare the lifeblood of insurance, but we can't keep dishing offeverything to the federal government when something goeswrong.”

The association also supports allowing insurers to put asideprofits, tax-exempt, toward eventual natural catastrophes, and itwill be up to the association to get congressional representativesto listen and work to pass this legislation.

While some may argue that creation of a disaster catastrophefund would only serve to subsidize the disaster-prone regions ofthe United States, Mr. Page said the fund should be directed at allnatural disasters. He also noted the vital importance of the Gulfregion, which is a major supplier of oil and gas to the rest of theUnited States.

On other issues, he said the association would continue tosupport state regulation of the insurance industry.

“Federal regulation is not needed,” he said flatly.

After Hurricanes Katrina and Rita, it was local governmentpeople turned to for help with their insurance, Mr. Page said,adding that he could not imagine a federal agency dealing asquickly and effectively for consumers as state regulators did.

On the issue of Terrorism Risk Insurance Act supports forinsurers in the event of a catastrophic attack, he said long-termextension of the act is vital, but the Senate version of theextension lacks important components that are in the Housebill.

The reauthorization, he said, should provide coverage fornuclear, biological, chemical or radiological terror events. Hesaid while national carriers have the wherewithal to absorb thehigher event trigger in the Senate bill, the House's lower triggerof $50 million would ensure that regional insurers would remain ingood financial standing after an event.

PIA will continue pushing its Local Agents Serving Main StreetAmerica branding campaign to produce more resources for agents toutilize. To assist agents in growing and perpetuating theiragencies, the association will be implementing a resource center onthe PIA Web site that will give valuable advice in this area, headvised.

The association is also launching Vision 2010, a committee whosejob it will be to identify products, coverages and forms agents andcustomers need to cover risks, Mr. Page said.

As for PIA itself, he said it is in the strongest position hehas seen in years, with membership growing continuously over thepast three years.