Professor Philip Lane:

I do not have the letter in front of me. As the report indicates, insurance in this country has been a major headache. There was volatility due to underpricing, lack of proper assessment of risk and so on, which, in turn, led to the surge in premia in recent years. I totally agree with the general story that the insurance market has been dysfunctional. I will ask Mr. Sibley to deal with the behaviour in individual firms.