Summer fun - only joking!

Dear Friend,

Welcome to the first-ever July issue of Reinsurance!

Normally as the major announcements start to dwindle and what we Brits call the "silly season" approaches, most reinsurance journalists wind down for the summer and try to pack in a bit of relaxation before the organised chaos that is the pre-Monte Carlo season starts to clamour for our attention.

Since I've taken over the magazine, I've realised that just because we might want to take a bit of a vacation, it doesn't mean that the world stops turning, the wind stops blowing or the financial markets go into limbo. That's why I thought we'd make sure we produce a July issue - no thanks from my wife and family - but there you go.

We also thought that since maybe you weren't expecting the magazine to arrive, perhaps you wouldn't mind its content being a little more unexpected too. The first half of the magazine has all our usual news and analysis, but then just before you cross the centrefold, it gets ever so slightly stranger!

The tone is a lot more relaxed, and the subject matter is too - travel, cool gadgets, luxury products and hypothetical relocation games all vie for your attention instead of the usual mix of features, briefings and legal advice. It's something of a radical departure, but don't worry, it is only intended to be a one-off for this unique midsummer issue. Please let me know what you think of it - I'm really interested in your feedback.

However, just because the tone is somewhat lighter, it doesn't mean that the themes behind the issues aren't. Take business relocation: offshore relocating is a massive issue. In a fit of road rage after a particularly bad rush hour, we might all feel like upping sticks and plonking our business down on the nearest tropical island, but how feasible is this in reality? Would we lose our key employees and the ability to service our biggest and best customers? And could we be absolutely sure our small army of outside accountants, lawyers and consultants would come with us?

There's also a question of scale - if everyone relocated offshore, the costs of doing so would soon become prohibitive (and within a couple of years, the traffic on our chosen island domicile would end up being just as bad as the big grimy cities we left behind). It is an unfortunate fact of life that as soon as you discover something perfect, you start the process that eventually spoils or ruins that discovery.

Also, if a tipping point were reached, the major western economies might be forced to take radical action and attempt to repatriate offshore capital - either that, or a significant global recession or depression would make it all too easy to blame offshore domiciles for the big economies' woes. Populist politicians love easy scapegoats - and none are easier than the fiscal paradises of the world, which ultimately lie at the physical mercy of the major military powers.

What about corporate and social responsibility? Just look at air travel as an example. Our highly mobile global industry probably consumes a higher volume of aviation fuel per capita than any other in the financial services arena. How's that for hypocrisy in a sector that constantly lectures all and sundry on the imminent need for swift international action to tackle climate change?

So much for this issue being light-hearted - still, sit back and try to enjoy it (as you dodge the first hurricanes of the season)!PS. Don't forget to visit our superb website at www.reinsurancemagazine.com to sign up for breaking news and your free weekly news alert and incisive comment.

PPS. You can also sign up for our Rethink surveys at www.reinsurancemagazine.com/rethink. You'll see what your peers are thinking and keep one step ahead of everyone else - and you might even win a bottle of champagne!