Insurers have been in the thick of the global financial meltdown, with US non-life giant AIG receiving a humiliating $85 billion (£46 billion) bail-out loan from the Federal Reserve to cover its exposure to property-related losses, derivatives and other financial nasties. This massive company, run for decades by its formidable founder Hank Greenberg until just a few years ago, had remained strong in its traditional core insurance business but, along with many others, had allowed itself to be seduced into arcane and apparently lucrative new areas, which have turned into a minefield.

However, in insurance, bad news for some can often be good news for others. Several insurers, not least in the Lloyd’s market in London, have been suggesting the prospect of the withdrawal of AIG’s heavyweight underwriting muscle could help stem the relentless slide in premium rates caused by too much capacity around the world.

The AIG debacle follows Hurricane Ike, which, although it is now expected to cost insurers between $7 billion and $12 billion in claims, has done less damage than initially envisaged.