A casual observer of the insurance business might describe the industry as a souffl?–a rewarding dish but complex and delicate. Slam a door with a souffl? nearby (or hit an insurer with the impact of natural catastrophes or terrorist acts), and the dessert (or insurer) can collapse. Or so goes common wisdom, which in this industry seems reinforced by an ever-present waiting game regarding when crises may occur.

I prefer another view. On the subject of souffl?s, chef and food writer James Beard has been quoted as saying: “The only thing that will make a souffl? fall is if it knows you are afraid of it.” So, is there anything to be afraid of?

On the life side, although life insurance premiums grew by 3.9 percent worldwide in 2005 over 2004, life premiums fell by .4 percent in the U.S., which a Swiss Re sigma study ascribes to higher short-term interest rates and poor stock market performance.