For what is supposedly still a state-regulated business, insurance officials spent an awful lot of time in Washington this past year--and given the circumstances, it looks like that will certainly remain the case once again throughout 2009.

Of course, the biggest story out of the nation's capital this year was the election of Barack Obama, which means the Democrats will control both the executive and legislative branches next year--a prospect not at all comforting to this generally Republican-leaning industry.

Shortly after the Illinois senator won the seemingly endless race for the White House over Republican rival John McCain of Arizona, industry observers were already fretting about the likelihood that a Democratic administration will appoint more plaintiff-friendly judges to the federal bench, as well as regulators who will take no prisoners as they impose new rules.

Most casualty insurers expect a jump in lawsuits, and many expressed concern that hard-won tort reforms may be overturned by trial lawyer-friendly Democrats in Congress.

President-elect Obama also seconded calls for a national catastrophe program to back up state funds--perhaps a key to his victory in the crucial swing state of Florida. Whether his administration will overlook that issue in the flood of crises demanding the president's attention remains to be seen.

However, if another major hurricane hits Florida, a cat fund bill along the lines of the proposal pitched by ProtectingAmerica.org--a lobbying group heavily supported by Allstate--could jump to the front of the legislative lineup.

A more pressing disaster issue is reauthorization of the debt-ridden National Flood Insurance Program, scheduled to expire March 3, with the House and Senate at odds over whether to add wind coverage.