Editor's comment: Commercial rates still not good enough

It appears that the market is waiting for some kind of trauma before it introduces sustained, controlled increases. In fact, this is what has happened in the motor market, with insurers seemingly having waited for some dramatic losses and headwinds before finally raising pricing quickly and steeply.

We are told that reserve releases are set to run out at any minute, yet the dual pricing seen by 90% of our survey respondents shows that insurers are prepared to drop pricing considerably when it comes to winning new business. If you compare graph two with graph four in the survey, you can see this trend. Brokers provided plenty of feedback to us on this and their feelings are clear, with one describing it as a "divisive situation that keeps the market in a state of chaos" and another saying that it shows "contempt for existing customers and business partners". In order for commercial premiums to rise steadily, the industry needs to make sure that renewals and new business premiums are as closely aligned as possible, so years of measured increases or price stability are not wrecked in the stroke of a pen.

Sullivan returns at Willis
It was a curious combination of surprise but business as usual to see Martin Sullivan return to insurance as deputy chairman of Willis Group Holdings and chief executive officer of its new business unit, Willis Global Solutions. Sullivan appears to have avoided any major, sustained fallout in the press about his role at AIG during the crisis and his new boss Joe Plumeri even said he was "ecstatic" that Sullivan was joining his business. I'm sure that those in the US government attempting to shore up the mess at AIG will have rather different sentiments. One positive for the government is that his return might mean that it has been successful in claiming back some more of his multi-million dollar payoff.