OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best’s composite of rated Caribbean general insurance companies remained profitable in 2015, despite an overall net income decline of 27.3% amid a challenging economic environment and regulatory landscape. The Best Special Report, titled, “Despite Challenges, Outlook for Rated Caribbean General Insurers Remains Stable,” states that Caribbean insurers benefited from a relatively benign catastrophe loss year for the region. For these composite insurers, consolidated gross premiums decreased by 1.4% and consolidated net premiums increased by 4.6%.
In 2015 and continuing into 2016, soft markets persist throughout the region as the economies continue to be directly influenced by the economies of North America and Europe, since tourism from these continents remains a major source of revenue. Revenue prospects are somewhat dim, reinsurance costs continue to retreat and pricing pressure has intensified, placing greater strain on policy retentions and margins.
Most Caribbean governments continue to struggle with fiscal and economic imbalances as they attempt to jumpstart anemic economies. In addition, the costs associated with the regulatory and compliance functions of doing business in the region have increased tremendously.
A.M. Best believes that rated Caribbean insurers will continue to face significant headwinds such as catastrophes, prevailing low interest rates, economic malaise and higher inflation. However, A.M. Best views the overall outlook for rated Caribbean insurers as stable.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=249948.
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