4: Greenberg Is The Comeback Kid! Last year, I predicted former AIG top dog Hank Greenberg would “beat the rap,” overcoming a state civil suit and possible federal charges over alleged misuse of finite re deals to cook his books. Although the publicity drove him from his throne, the authorities have yet to lay a glove on him. He has only just begun flexing his muscles in his reincarnation as head of C.V. Starr.

5: Gov. Spitzer Takes Aim At The Industry! I would not be surprised to see the former crusading attorney general propose a statewide ban on contingency fees. However, I think the industry might be pleasantly surprised by his new insurance watchdog, Eric Dinallo. Look for the former Willis general counsel to be an active player, but more reasonable than many expect.

6: Lloyd's Goes Electronic! I expect the old coffeehouse to go “Starbucks” on us sooner rather than later by testing virtual placements of risks over the Web. If Lloyd's was not interested in exploring such an initiative, why would they have bothered bringing Richard Ward from an energy futures market in as CEO?

7: Collateral Re Rules Change At Last! After years of fighting to at least lower onerous collateral requirements for “alien” reinsurers, foreign carriers will finally get a relatively level playing field on which to play–a long overdue move.

8: Uncle Sam Dips Toe Into Insurance Regulation! Look for surplus lines and perhaps reinsurance to be regulated under standards set by the federal government, but don't expect passage of an optional federal charter as long as there is so much dissension on the issue within the insurance industry.

9: Bermuda Gives Birth To More Billion-Dollar Babies! Emboldened by the absence of disaster losses and the fact that property rates are holding up in cat-prone regions, private equity investors will keep funneling big bucks into Bermuda. However, if we remain storm-free and rates plunge, the money men will move on to more profitable opportunities next year.

10: National Cat Fund Proposal Goes Nowhere! With the industry enjoying massive profits despite two of the worst hurricane seasons on record in 2004 and 2005, Allstate's pitch for a national catastrophe backstop is dead in the water–unless a major storm devastates the New York area!