Nearly two years after a scandal over commission kickbacks, theworld's three major insurance brokerages are still recovering fromthe loss of contingent commissions, industry analysts warn.

The reduction in one-time charges (primarily related to the feeinvestigation) as well as a reduction in expenses should helpbrokers improve their net earnings in 2007, according to a recentreview of the U.S. insurance brokerage industry by James Auden, ananalyst with Fitch Ratings in Chicago.

However, he said, brokers will still face challenges to continueorganic growth at past-year levels in the face of a deepening softmarket that will affect commissions and revenues.