A Century of Hindsight.

As the new century dawns, it's a good time to revisit the past 100 years to examine how the insurance industry has evolved and what lessons have been learned. Another impetus for this project: It was in 1900 that the precursor to Best's Review was first published.

In the past century, the insurance industry has experienced overwhelming growth and has become increasingly complex. The property/casualty industry grew from an estimated $210 million in premiums in 1900 to $281.6 billion (excluding state funds) in 1998. The life industry wrote $338 million in net premiums in 1900 compared with $460 billion in 1998. Statistical studies listing the top property/casualty and life/health insurers by decade begin on page 79.

The industry's growth in the United States is directly linked to the country's history. The cover package, "Marking Milestones," (page 31) highlights many of the events that led to the development of some of today's biggest product lines. For instance, workers' compensation made its appearance in the second decade of the century, a byproduct of America's transition from an agrarian society to an industrial economy. As the workplace became mechanized, workers injured on the job were not content to be dependent on the compassion of their employers for their medical bills and lost wages. And in the 1930s, seeds of managed care began to take root around the country as hospitals associated with large construction projects were financed by insurance companies that paid a fixed, upfront amount per covered worker.

Insurers still are trying to get a handle on how best to structure workers' comp coverage and health care. At the same time, they're struggling with many more complex issues than their industry counterparts faced 100 years ago. Those challenges include how to best accommodate opportunities created by demutualization, securitization and financial-services deregulation. The "Looking Ahead" section (page 93) examines some of these pressing issues.

Marilyn Ostermiller