Industry experts predict an extension of T.R.I.A.

Leaders of the U.S. property and casualty insurance industry expect Congress to extend the Terrorism Risk and Insurance Act this year, according to an Insurance Information Institute (I.I.I.) survey.Of the executives polled, 89% are confident that the government will move quickly to extend the law for a significant period or to provide a permanent backstop, an I.I.I. release said.”Five years since 9/11 and the frequency and severity of future attacks is still fundamentally unknowable,” Dr. James Valverde, VP of economics and risk management at the I.I.I., said in a statement.Those polled were not as optimistic that Congress will adopt a National Catastrophe Insurance Plan in 2007 though.88% of respondents feel the initiative will not come to fruition.In addition, 63% of insurance leaders think the push for an Optional Federal Charter will also not gain momentum in the new Congress.But, those polled are holding on to the belief that the courts will favour insurers in wind vs. water suits.81% are convinced that litigation will be successfully resolved in favour of the insurance industry.When asked to predict combined ratios in the coming year, 75% anticipate it being higher than 2006’s which was estimated at 94.3.