The whole picture could change dramatically in the coming quarters.

The insurance market shrugged off the record hurricane losses of 2004, but the combined impact of Katrina, Rita and Wilma was clearly more than the market was ready to absorb in 2005. So far it seems only property insurance has been affected, but it remains to be seen if the rise in property rates will be the catalyst for an overall upturn in prices and a harder market.

There is increased competition as carriers all vie for renewals in this profitable market. The natural market reaction is to drive down prices. But the devastation of Katrina and Rita is only now beginning to translate into higher renewal prices. The whole picture could change dramatically in the coming quarters.

There is increased competition as carriers all vie for renewals in this profitable market. The natural market reaction is to drive down prices.

If they suggested something specific as a change, it went on the list. If it was a general comment, it didn't.

One of the most important impacts this evidence suggests is a change to the Earth's hydrologic cycle. Higher tropical temperatures will increase the intensity of hurricanes and winter storms. And, precipitation patterns will change, so that more rain that now falls on the central U.S. - the nation's breadbasket - may go to higher latitudes where the quality of soil may not be as conducive to agriculture.