Will the influx of capital into global reinsurance markets help to push premiums down? Not likely, according to the 350 insurance leaders who attended the New York forum. 91% predicted that commercial rates would continue to harden through this year, with capacity tight and rates continuing to climb. As for domestic classes, 79% said the hardening would continue through 2002.

But there are dissenters. A KPMG analysis has pointed out that all that capital coming in will tempt the insurers to lower their rates just to keep new entrants at bay. Trouble is, if the profits go down as a result, the new capital is likely to disappear as quickly as it arrived.