For an industry that everyone claims is boring, there never seems to be a dull moment, as the following account of the 10 most significant property-casualty insurance stories of 2006 demonstrates. Let me emphasize that this list is completely my own and totally subjective. I invite readers to suggest any major developments that I might have overlooked. Click below for my top 10 picks, followed by an overview of the year in review.

Without further delay, the following are my personal picks for the Top 10 Insurance Stories of the Year! (I will post a recap of each over the next couple of weeks for your feedback!)

#1: Mother Nature Gives Insurers A Break

#2: Will Insurers Resist Temptation To Cut Prices?

#3: Insurers May Yet Drown In Flood Claims

#4: Agents Battle Brokers Over Contingencies

#5: P-C Industry Suffers From Split Personality

#6: D.C. Power Shift Could Benefit Insurers

#7: Buffett Takes Gamble With Equitas Deal

#8: NAIC Collateral Plan Stuns Reinsurers

#9: Carriers Irked By Rating Agency Demands

#10: Hartwig Tapped To Speak For The Industry

All things considered, 2006 was an outstanding year for the industry.

To begin with, there were no hurricanes after two record catastrophe seasons in 2004 and 2005the first time a non-event was my story of the year.

In addition, there were no major revelations coming out of New York Attorney General Eliot Spitzer's office–although the impact of his probes into bid-rigging and contingency fee abuse still reverberates throughout the industry, and his Election Day victory for the governorship means he'll be picking the Empire State's next insurance superintendent.

While the market kept softening–outside of catastrophe-prone property exposures, that is–the industry is reporting skyrocketing net income. The financial windfall has prompted charges of price-gouging, but insurers certainly would rather defend record profits to the public and policymakers, than have to explain soaring losses to shareholders.

Of course, problems loom–as always.

Court challenges threaten to punch a hole in the industry's flood exclusion, and its denial of Katrina claims has key politicians from both parties gunning for insurers.

Meanwhile, insurer and broker groups are badly split over such key policy issues as the need for a national disaster reinsurance fund, federal regulation and producer compensation. Still, although unpleasant, these conflicts appear to be manageable.

Last January, I peered into my crystal ball and predicted what the 10 most important stories might be this year. How did I do? Not too shabby!

First, I said Mr. Spitzer would win the governorship in a landslide, and that Lloyds would name a new CEO. (I didnt need to be psychic to tell you that.) I also predicted that Hank Greenberg would beat the rap–and so far, he remains innocent until proven guilty. (See Fallen Giant? on page 5.)

I said AIG would settle with Mr. Spitzer (they did), that any market rebound would fall flat (it did, with a thud), that the NAIC would dodge a bullet on federal regulation (it has–for now), and that insurers would reap a fortune if the hurricane season turned out to be milder than expected. (Ka-ching!)

However, I also predicted that any flood suits would be foiled, because contract law just isnt on their side. Ah, well. Nobodys perfect (although if insurers prevail in the New Orleans levee appeal, Im home free!)

What lies ahead for the industry next year? Check out my Jan. 1, 2007 blog entry for my predictions!

Special Reports /

NU's Top 10 Stories Of 2006!

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