American insurers will continue to seek reinsurance solutions from offshore — and predominantly from Bermuda reinsurers — delegates to an annual insurance gathering have been told.

Concerns were also heard that the most immediate potential risk to the economy is US president Donald Trump’s use of tariffs, although North American Insurance Group head Doriana Gamboa also highlighted deregulation, deportation and DOGE as critical issues.

DOGE is the President’s Department of Government Efficiency, established by executive order on Day 1 of the new administration.

Insurance Insights 2025 North America was a Fitch Ratings event at the Hearst Tower in New York City, which included presentations from the agency’s senior Insurance analysts as well as external speakers covering key risks, opportunities and challenges ahead for the North American insurance Industry.

Fitch analysts said public policy changes, worsening natural disasters and broader economic uncertainties will affect major sectors of US insurance.

Among the themes explored during the conference were the proliferation of offshore reinsurance strategies in the life business. In property/casualty insurance, managing the largest risks to capital was a topic of interest.

The agency said: “Fitch expects material use of offshore reinsurance to persist in 2025, with the vast majority ceded to Bermuda. Life insurers might migrate to other regimes with enhanced regulatory flexibility.

“Senior director Jamie Tucker anticipates continued growth in offshore vehicles like sidecars and reinsurance platforms. This will lead to more offshore reinsurance, adding another wrinkle to what senior director Brian Schneider cited as a continually evolving reinsurance market.

“Both Fitch analysts and most of the conference participants [nearly 80 per cent] cited capital arbitrage and optimisation as the primary motivation for this evolution.”

More than half of the conference participants believe natural disasters, such as the recent California wildfires, are the biggest source of volatility for property/casualty capital but that insurers are in a solid position to handle resulting losses.

Fitch managing director Jim Auden cited cyber insurance as the fastest-growing p/c product segment. As cyber premiums rise, so does the potential for more seismic cyberattacks, motivating insurers to develop models that more accurately capture cyber-risk.

Mortgage insurers have a firmly neutral sector outlook. Despite still-elevated mortgage rates, the credit profile of what senior director Chris Grimes called “today’s borrower” remains radically stronger compared with pre-GFC.

Irrespective of how the broader housing market shapes out, mortgage insurer stability appears intact thanks to factors conference participants cited as varied as the evolution of in-house PMI models and more usage of credit risk transfers.