For an industry that everyone claims is boring, there neverseems to be a dull moment, as the following account of the 10 mostsignificant property-casualty insurance stories of 2006demonstrates. Let me emphasize that this list is completely my ownand totally subjective. I invite readers to suggest any majordevelopments that I might have overlooked. Click below for my top10 picks, followed by an overview of the year in review.

Without further delay, the following are my personal picks for theTop 10 Insurance Stories of the Year! (I will post a recap of eachover the next couple of weeks for your feedback!)

#1: Mother Nature Gives Insurers A Break

#2: Will Insurers Resist Temptation To Cut Prices?

#3: Insurers May Yet Drown In Flood Claims

#4: Agents Battle Brokers Over Contingencies

#5: P-C Industry Suffers From Split Personality

#6: D.C. Power Shift Could Benefit Insurers

#7: Buffett Takes Gamble With Equitas Deal

#8: NAIC Collateral Plan Stuns Reinsurers

#9: Carriers Irked By Rating Agency Demands

#10: Hartwig Tapped To Speak For The Industry

All things considered, 2006 was an outstanding year for theindustry.

To begin with, there were no hurricanes after two recordcatastrophe seasons in 2004 and 2005the first time a non-event wasmy story of the year.

In addition, there were no major revelations coming out of NewYork Attorney General Eliot Spitzer's office–although the impact ofhis probes into bid-rigging and contingency fee abuse stillreverberates throughout the industry, and his Election Day victoryfor the governorship means he'll be picking the Empire State's nextinsurance superintendent.

While the market kept softening–outside of catastrophe-proneproperty exposures, that is–the industry is reporting skyrocketingnet income. The financial windfall has prompted charges ofprice-gouging, but insurers certainly would rather defend recordprofits to the public and policymakers, than have to explainsoaring losses to shareholders.

Of course, problems loom–as always.

Court challenges threaten to punch a hole in the industry'sflood exclusion, and its denial of Katrina claims has keypoliticians from both parties gunning for insurers.

Meanwhile, insurer and broker groups are badly split over suchkey policy issues as the need for a national disaster reinsurancefund, federal regulation and producer compensation. Still, althoughunpleasant, these conflicts appear to be manageable.

Last January, I peered into my crystal ball and predicted whatthe 10 most important stories might be this year. How did I do? Nottoo shabby!

First, I said Mr. Spitzer would win the governorship in alandslide, and that Lloyds would name a new CEO. (I didnt need tobe psychic to tell you that.) I also predicted that Hank Greenbergwould beat the rap–and so far, he remains innocent until provenguilty. (See Fallen Giant? on page 5.)

I said AIG would settle with Mr. Spitzer (they did), that anymarket rebound would fall flat (it did, with a thud), that the NAICwould dodge a bullet on federal regulation (it has–for now), andthat insurers would reap a fortune if the hurricane season turnedout to be milder than expected. (Ka-ching!)

However, I also predicted that any flood suits would be foiled,because contract law just isnt on their side. Ah, well. Nobodysperfect (although if insurers prevail in the New Orleans leveeappeal, Im home free!)

What lies ahead for the industry next year? Check out my Jan. 1,2007 blog entry for my predictions!