With the amount of money generated by the insurance industry and the fact that its obligations are subject to legal interpretation--often during high-profile court battles--there is never a shortage of controversy in this business. That's good news for a newspaperman like myself, but not so good for an industry that has to wonder what, if anything, it could possibly do to turn around its reputation for greed, inefficiency and rogue behavior.

Before you feel too sorry for the industry, however, consider that property-casualty insurance on the whole was very profitable once again in 2007, even without reliable investment income.

Underwriters are certainly doing a better job, helped by improved modeling and restrained by more demanding rating agencies, Wall Street analysts, shareholders and regulators. But it also helps there were no major catastrophes--natural or man made--for the second straight year.

How long the good times roll depends on whether insurers continue behaving responsibly as they wade deeper into a softening market, or repeat history by marching off the cliff like lemmings as competition heats up. Of course, all bets are off if another major hurricane, earthquake or terrorist attack hits.

The accompanying list of top stories for 2007 is totally subjective. Indeed, if you feel I've overlooked a key development, write and tell me so at sfriedman@nuco.com, or post a comment to this introduction on my blog at www.property-casualty.com.

It's hard not to tap the soft market as the year's top story, since falling prices have such an impact on everyone's bottom line--whether you are a buyer, seller or distributor. Going forward, the rising limits, broader coverage and looser conditions offered to attract business will also take their toll on the industry's fortunes.

The way insurer integrity was challenged over Hurricane Katrina claims, then later on the number of homeowners underinsured for California wildfires, was a clear number-two story in my mind, given the political repercussions. Insurers can only hope Washington turns its attention (and wrath) on banks next year following the subprime mortgage crisis, and leaves their industry in relative peace.

It certainly was a satisfying year for us here at National Underwriter.

We ran our first Virtual Conference last month (archived until February on our Web site at www.propertyandcasualtyinsurancenews.com) , featuring the "Battle Of The Bobs," in which Bob Hartwig, president of the Insurance Information Institute (and defender of the faith), faced off against Bob Hunter, insurance director at the Consumer Federation of America (and the industry's most potent critic).

We also launched our inaugural "Award For Excellence In Workers' Compensation Risk Management," and announced we would introduce our first "Agency Technology Achievement Awards," in partnership with ACORD, next spring.

In addition, it was very gratifying to see my blog traffic pick up dramatically, peaking at over 9,000 unique visitors and 46,000 hits in October, while generating some very lively debates with and among readers. Thank you for joining in my online free-for-all!

What will the Top-10 Stories Of 2008 be? Check out the Jan. 7, 2008 edition for my predictions.

Meanwhile, thanks for all your support and feedback, and have a very happy, healthy and profitable new year!

Special Reports /

Top-10 P-C Insurance Stories Of 2007 Focus On Soft Market, Poor Reputation

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