The top staff official of the Property Casualty InsurersAssociation of America is warning the industry that reauthorizationof the Terrorism Risk Insurance Act will be an “uphill climb” inthis Congress.

At the same time, the top staffer at the American InsuranceAssociation acknowledged that “in the current economic andpolitical climate, renewal will be tough.” However, she said thatthat the industry and policyholders are organized and she isoptimistic that, ultimately, TRIA will be reauthorized in someform.

In his comments, David A. Sampson, PCI president and CEO, saidthat the industry should try to enlist Michael McRaith, director ofthe Federal Insurance Office within Treasury, as a supporter,because the Treasury has an institutional bias against theprogram.

Leigh Ann Pusey, AIA president and CEO, noted that renewal ofTRIA remains a top priority for the property and casualty insuranceindustry in this Congress.

Sampson and Pusey made their comments at the Networks FinancialInstitute's Annual Insurance Public Policy Summit, held inWashington. It was sponsored by Indiana State University.

Sampson said that in order to get TRIA extended, “I think weneed to develop a very thoughtful and unified industry approach onhow to reach Congress on this.”

TRIA authorization runs out at the end of the current Congress,Dec. 31, 2014.

Sampson said, “Straight reauthorization of TRIA is a very,very high hill to climb.”

He added that, in general, FIO “should stay focused on thatinternational role, but said, “[McRaith] is going to have to playan important role in the administration on TRIA—it is a place wherehe can spend political capital and time.”

For her part, Pusey said the industry is very organized inpresenting the issue to members of Congress. She also said that apolicyholder coalition, The Coalition to Insure Against Terrorism,has been reactivated.

Legislation extending the program for five years, until 2019 wasintroduced in the House on Feb. 5. Rep. Rep. Michael Grimm,R, and Carolyn Maloney, D, both from New York, are primarysponsors.

It also has strong support from Sen. Charles Schumer, D-N.Y.

However, Rep. Jeb Hensarling, R-Texas, chairman of the HouseFinancial Services Committee, has made clear to industry officialsthat he cannot support renewal in its present form, but wouldentertain amendments to the current program, that is, those thatwould narrow the scope of the government's liability in case of aterrorist attack.

Privately, the consensus of industry officials, both foreign anddomestic, is that there is some capacity for terrorism riskcoverage, but to nowhere near the extent currently provided theindustry through the current version of TRIA.