Insurance industry in a tough cycle.

• Position: Business Briefs

Don't look for good news on the insurance front in the coming months. Hit by a confluence of forces, the non-life insurance industry is experiencing hard times and is likely to be "hardening" (boosting) rates for years, says Swiss Re, a major reinsurance firm. "The hardening of the market is expected to last longer than in previous cycles, given the global shortage of quality capital and increased risk exposures," the firm adds.

One of the chief problems, of course, is the aftermath of 9/11, though Swiss Re says coverage had been tightening by late 2000, well before the attacks. But it says the insured loss from the World Trade Center attack could be $40 billion to $50 billion, with U.S. insurers and reinsurers actually responsible for less than half -- 40 percent -- of the loss, with European companies picking up 50 percent and Bermuda-based firms the rest.

Another big issue is stock market losses. Swiss Re estimated that U.S. and non-U.S. insurers are on track to lose $180 billion in...