Analysts at Goldman Sachs believe that the London Market and re/insurance stocks are debating whether companies are pricing correctly for the increased cost of weather losses due to climate change, or whether companies are basing pricing on historical trends.
According to analysts, the market is also questioning whether or not companies have been conservative enough in their catastrophe budgets, or whether they are basing these estimates on previous trends which has lead to estimates being behind the curve, and ultimately increasing the probability of disappointing earnings.
