In a recent Senate Banking Committee hearing, a number ofRepublican senators questioned the necessity of extending theTerrorism Risk Insurance Act of 2001. Committee Chairman RichardShelby (R.-Ala.) reminded the committee that the Terrorism RiskInsurance Program had been conceived as a temporary response to the2001 attacks. “I think we are at a point where we can determine,what, if anything more, is required of this 'temporary' program,”he said.

Sen. Wayne Allard (R.-Colo.) said that he had reluctantlysupported the original legislation. “I came around to supportingthe TRIA legislation only after repeated assurances from theindustry that this was a one time request-simply buying time forthe private markets to regroup,” he said. “Now the industry is backwith the same arguments. Once again, we are being told that themarkets just need a little more time to adjust. I'm not sure why weshould believe it this time, though. If this is to become aperpetual government program, like flood insurance, the industryshould be honest about it.”

In seeking a more permanent solution, the United States might dowell to emulate the European approach to dealing with the concernsof terrorism in commercial markets, suggested Jon S. Corzine(D.-N.J.). “I hope we can ultimately come up with a pool system forterrorism insurance that's modeled after the Pool Re system inEurope,” he told the committee.