The country's economic meltdown, fueled by a subprime mortgage crisis that prompted chaos on Wall Street and nearly destroyed American International Group, was the dominant topic of discussion at a major gathering of insurance agents and brokers this month, with most expecting further turbulence ahead for several insurers and their producers.

Indeed, the timing of the Council of Insurance Agents and Brokers' annual Insurance Leadership Forum–coming less than a month after an $85 billion federal government credit facility was set up to ease liquidity issues at the parent company of American International Group, prompted by the trading of credit default swaps–put the industry's woes front and center in discussions about the impact of the economic crisis on the industry.

In interviews here, several brokers said difficulties facing AIG's parent–now seeking to sell off parts of the company to repay federal loans–have clients reevaluating their positions with the insurer.

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