Dear readers: Happy new year! Although this wish certainly comes from the bottom of my heart, I have to admit expressing it produces a bit of a hollow feeling in the pit of my stomach–an experience I don't think I've had before. Maybe this is because it's the heart talking and not the head: Reading daily about the fallout from our economic meltdown definitely doesn't help to lift one's mood despite the fresh start a new year normally brings.

However, as a wise colleague once advised me when we were dealing with a difficult situation: Take the emotion out of it. OK, it's time to take a cold, hard, logical look at where we are and where we're going.

No surprise: The two top-of-mind issues for insurers at this juncture are the financial and regulatory challenges that lie ahead. But realistically speaking, neither one is unmanageable. Generally, the insurance industry has been weathering the storm without getting soaked. Yes, depending on line of business and investment choices, some insurers are and will be feeling repercussions. Overall, though, the industry is hanging tough and is maintaining sufficient levels of capitalization.