Bermuda is facing the same economic issues as the rest of the world, but it is well-equipped to meet those challenges.That is the view of Caroline Foulger, partner and re/insurance leader at PricewaterhouseCoopers (PwC).She said that currently there was a combination of an excess of supply and downward pressure on demand from the industry as buyers reassessed their re/insurance needs and expenditure as they downsized or cut their costs accordingly.Ms Foulger said that as a result of the excess capital in the market it would likely take a “game-changing” loss event for rates to start increasing again.She added that while there had been a number of redomestications of holding companies, core operations had remained in Bermuda and would probably continue to do so in the future as businesses sought to take advantage of the benefits of doing business on the Island.Scott Watson-Brown, partner and asset management leader at PwC, said that the offshore world was becoming closer to the onshore one in terms of regulation and investors’ expectations had risen significantly.Mr Watson-Brown said that fund managers’ earnings were returning to their previous levels as funds returned to historic levels, on the back of global economic recovery from the lows of the past two years.But he added that Bermuda continued to face significant competition from other jurisdictions for business from companies looking to set up within their shores.