This issue

Brokers may have thought 2004 was bad but the full financial and business implications of the Spitzer probe will only become evident during the course of 2005. The three largest firms all made profits last year – though much reduced of course – and this year’s performance will be the true test of the market upheaval. Contingent commissions are out and the brokers have felt obliged to divest themselves of some of their profitable non-core operations in a move that is reminiscent of the Lloyd’s market divestment of the 1980s. After the perceived success of Taiwan’s earthquake pool, local authorities are investigating the formation of pools for windstorm and flood losses. Brokers are invited to tender via Central Re, the administrator of the earthquake pool. Turn to the centre pages for our colourful statistical monthly supplement.