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In lieu of the recent string of major natural catastrophes worldwide, insurers are now more selective in the capital they deploy and, in some cases, withdrawing from catastrophe-affected regions and loss-making business sectors, according to Marsh.  Forecasts for an active hurricane season, along with greater insurer discipline, is raising the potential for a changing market dynamic through the end of this year, according to a Marsh broker.

Despite all the economic and financial challenges of the past year, A.M. Best is maintaining stable outlooks on most areas of insurance for 2011, except commercial lines and health. Those two areas are being downgraded to "negative."

As a group, commercial lines, personal lines, and reinsurance have weathered the past few years fairly well. However, there's potential for downward rating pressure, especially in the commercial segment where loss-reserve adequacy has been eroding, A.M. Best says.