terms on the front page of the Business section.

The article, by reporter Joseph Treaster, notes the decline of the tourism industry and the rise of an insurance powerhouse.

Noting that the ACE Ltd. and XL Capital Ltd. buildings are rising on the grounds where the "stately'' Bermudiana Hotel once was, Mr. Treaster shows how insurance has become the largest earner of the Island's economy.

"In the low-rising, vaguely dated village of Hamilton, underwriters, actuaries and brokers are the new princes,'' the article stated.

Mr. Treaster reported that the insurance industry has grown to become the third largest insurance centre behind London and New York.

"Much as Liberia and Panama have provided flags of convenience for the world's maritime fleets, Bermuda has blossomed as a convenient extension of the American insurance industry,'' he wrote. "A self-governing British colony, it has generally managed to steer clear of money laundering, drug smuggling and most of the fly-by-night financial scams that have tarnished other so-called tax havens.'' He noted that Bermuda's example as a place with effective regulation without the red tape has led some of the US states to begin amending their regulations.

"Half a dozen states have agreed to let corporate buyers and sellers negotiate the terms and prices of high-level coverage just as all coverage is handled here,'' he said. "And similar legislation is being considered in New York and a dozen other states.'' He noted that tourism is declining because of a lack of things to do on the Island and high prices.

"Visitors in recent years have complained that the Island is horribly expensive -- a couple of sandwiches and drinks can easily run $40,'' he wrote.

"While peace and quiet were once big selling points for Bermuda, visitors today often complain that there is not much to do.'' In the last fiscal year, insurance and other international businesses pumped $757.6 million into Bermuda compared with $472.3 million from tourism.

BUSINESS BUC