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This year may prove to be one of the most important years for insurance broking in the UK, as well as for the rest of the insurance industry.

Not only is the regulation clock ticking down to January 2005, but there are also many additional factors that will make this a potentially crucial year for the world of insurance.

There is still much speculation about the expected consolidation of regional broker organisations, despite a recent survey stating only 6% of proprietors are considering selling their businesses. Linked to this is an increasing array of networking ventures, all seeking to manage significant volumes of premium as well as delivering new customers. Trying to work out what the regional retail broking market will look like in the future is no easy task.

Changes at senior level within the UK broking industry will impact, with a heightened drive for increased revenue. Commercial clients too, most of whom have had to absorb sharp rating increases during the past two years, will be looking for some positive noises from the industry. There has been much speculation about the insurance pricing cycle - most broking pundits are suggesting the cycle peaked in 2003.

Therefore, 2004 will be a competitive and challenging year for brokers. It will involve consolidating businesses, integrating into new networks, and implementing new processes, all while defending price-sensitive clients from aggressive revenue-driven competitors. However, a dash for growth, which is largely price-led, undermines the real value delivered by brokers and insurers. Simply churning business could result in the industry not meeting the necessary regulation demands.

This year, let's improve the industry's image by getting our preparation for regulation right, first time. Our and our customers' long-term interests might be better served if we can return to the battle for volume another year.