The infusion of alternative capital into catastrophe reinsurance has reshaped the market and continues to ripple through the industry as it expands to include new structures and cover new perils. The influx of alternative capital (along with relatively low catastrophe activity) has driven down catastrophe reinsurance prices to historically low levels, which has caused reinsurers to try to diversify into other lines of business. Their move into other lines has led to lower prices overall, prompted underwriters to modify terms and conditions in order to compete, and incentivized reinsurers to pursue M&A activity to achieve scale and diversification.