Political resistance to new government programs and “blue’ versus “red’ politics were among the forces that got in the way of timely renewal of the federal terrorism reinsurance program, said a leading insurance lobbyist in Washington.

The senior vice president for government affairs for the American Insurance Association, Leigh Anne Pusey, recalls that three or four years ago that there were jokes made by the Washington insiders regarding George Bush ending every single one of his speeches with “God Bless America and pass the terrorism bill.’

When it came to renewing TRIA in 2005, the full support for the Bush Administration was gone.

Pusey says, “Because they bought the program, thinking that it was temporary, a three-year-program, a bridge?’ When the industry said that the program had to be renewed, conservatives balked with power in Washington.  Pusey said that they faced the traditional conservative resistance to creating another government program.

Nevertheless, even though it was quite difficult making the decision with the pressure of the Republicans, congress did approve TRIA, an extension of the terrorism reinsurance program.  Two weeks before this extension was about to expire, they passed it.  The renewal suffered from a lack of understanding among some lawmakers making this especially difficult to decide.