Regulatory modernization, restrictions on cost-basedunderwriting, and extension of the Terrorism Risk Insurance Act arethe three most significant public policy issues facing insurers in2005, according to the Property Casualty Insurance Association ofAmerica, which is working with its member companies to develop acomprehensive political agenda.

“Because so many issues are being debated at both the state andfederal level, it is extremely important that our advocacy effortsare coordinated,” said Carl Parks, senior vice president, federalgovernment affairs for PCI. “We need to make certain that ourmessages to state legislators, state regulators, and members ofCongress are clear and unambiguous.”

Other issues identified by PCI members as important in theupcoming year include the application of Sarbanes Oxley tonon-publicly traded insurers, judicial reform (including classaction, medical liability, and asbestos litigation), market conductreform, catastrophe risks/deductibles restrictions/assaults onrating, and medical cost inflation.