If insurance companies insure against losses, when losses increase, the insurer’s losses increase too. One of the greatest risks to Financial Markets is seen to be growing losses in the insurance industry, followed by an “insurance crunch”, further damaging commercial trading conditions. A further shock to the financial markets is described as “massive write downs” on commercial property, expected during 2009. As for the housing market, “a new wave” of non-sub prime mortgage and credit card defaults is forecast to put even more pressure on a fragile financial system.