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2007 was a rather staid year for the P&C industry, all things considered. Yes we had floods, windstorms, a few tornados, and those terrible California wildfires, but the other big nemesis, the reviled hurricane, did not ravage any Southeast coastal areas, as happened in 2004-05. (Yes, we had damage in some Mexican territories, but they were lightly populated and were not a major concern for the U.S. insurance industry.) That’s not to say the industry is not facing challenges. There are a number of issues that we must be aware of as we go into 2008:

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