Optimism is being countered by an uncertain environment due to underwriting, economic, social and geopolitical factors, said Carlos Wong-Fupuy, senior director, AM Best.
The industry remains well capitalized and is dominated by the large global players, but faces incremental competition from shifting business models, said Edward Kohlberg, director, AM Best.
Catastrophe bonds remain one of the bright spots in the ILS market, said AM Best Managing Director Emmanuel Modu, referencing a new Best's Market Segment Report.
Expensive new treatments and therapies, as well as pressure on capital associated with government business, are driving greater demand for health reinsurance, said Doniella Pliss, director, AM Best.
Despite the current lull, parts of Latin America are prone to hurricanes, earthquakes and other major disasters, said AM Best Director Eli Sanchez and Financial Analyst Ricardo Rodriguez Perez.
