Thinking back to the cusp of the new millennium, few would have predicted the drama the property-casualty industry would face. As a result of unprecedented catastrophes, regulatory intervention and capacity shortages, we have seen advances in the form of stronger balance sheets, better controls, improvements in risk management and the existence of a federal reinsurance backstop–courtesy of the Terrorism Risk Insurance Act.
For 2007, we see five key issues commanding the attention of p-c company management, boards and investors:
o Continued profitability.
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