testifying

"It is our view that continuation of the program in its current form is likely to hinder the further development of the insurance market by crowding out innovation and capacity building," Snow told the committee. "Consistent with TRIA's original purpose as a temporary program scheduled to end on Dec. 31, 2005, and the need to encourage further development of the private market, the administration cannot support a straight extension of TRIA."

Many in the real estate and mortgage banking industries take issue with some findings outlined in the Treasury's report, specifically the notion that private markets can mostly provide terrorism insurance on their own. "We're disappointed in the way the conclusions of the Treasury's report are being used," Real Estate Roundtable president and CEO Jeffrey D. DeBoer tells GlobeSt.com. "The report doesn't present a road map as to how private markets could provide the terrorism insurance." He says the groups agrees with the study's conclusion that there is $4 billion to $6 billion in reinsurance out there and that the need is substantially more than that to make the economy go. "They believe private markets will fill that gap, but we are extremely skeptical; we see no evidence that private markets can do that. We're in the business of business and we'd like to operate on something more than just a belief. "

But, DeBoer points out that both the administration and supporters of TRIA's extension want the same thing--continued federal involvement, in some form, that will further the economy. "The administration has not said they want the year to end without a federal terrorism insurance program; they say they want reform," he notes. "[RER] thinks TRIA worked well, but if there's a better way to do it, we're ready and willing to participate in that dialogue. We want to go forward; the question is, what steps do we take?"