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I think one-fifth of brokers expecting to grow significantly, as revealed in the Professional Broking Sentiment Survey, is overstated. Good-quality brokers will have difficulty growing by more than 5% ex-acquisition in 2006.

It is difficult to see personal lines hardening. Household seems to be non-cyclical, with competition intense and the private car market will continue to be volatile. High fuel costs reduce mileage and claims incidence and some powerful players are looking to grow. RAC (Aviva), for example, wants to increase its policy base from £300,000 to £900,000. This does not suggest rates will harden.

There is little chance commercial rates will rise except in very isolated cases. We are only in the third year of the softening cycle and they always last a minimum of four years. The real softening occurred in the last six months of 2005 and, at a minimum, has a further six months to go.

Conflicts of interest are not a problem for most brokers. The majority have difficulty accessing good quality markets. Real conflict exists with major players that can leverage high commission levels, have overriders and often own wholesalers, underwriting agencies and virtual insurers.

The Financial Services Authority should concentrate on these rather than the mid-sized and small brokers whose margins are thin and are trying desperately to continue doing a good job for their clients.

A market softening means more capacity, making it easier to place professional indemnity and employers' liability and less commoditisation. It is understandable that the major concerns are FSA and customer expectations. Customers realise they can do a good deal by putting pressure on their broker.

The FSA, now a year on, seems to delight in creating uncertainty rather than allowing the industry to get used to regulation. It has forgotten it merely has to implement EU regulation and seems intent in goldplating everything in spite of soundbites from Gordon Brown that this should not happen. Where are the industry lobbying groups?

Tony Cornell, Cornell Consulting.