Insurers around the world are slipping on one major banana skin that is costing them dearly, according to the results of a new survey from London-based think tank Centre for the Study of Financial Innovation (CSFI) and PricewaterhouseCoopers. That is: too much regulation. More than 100 respondents to the 2007 survey say that excessive regulation is endangering the industry by loading companies with costs, distracting management and creating barriers to competition and innovation. This finding is linked to concern about growing political interference, particularly in markets where governments regulate insurance products and prices. Apparently the view is widespread, with responses from 21 countries showing it to be a major issue in North America, Europe, South Africa and the Asia pacific region. Other banana skins high on the list for property-casualty insurers include natural catastrophes and climate change. The main risks facing the life industry include growing human longevity and the soundness of assumptions underlying the pricing of life policies. What are your top insurance banana skins in 2007? Check out I.I.I. info on rates and regulation.