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Growing reinsurance losses an underwriting issue, not structural: BofA

April 20, 2022

Analysts at Bank of America (BofA) have argued that the worsening loss experience for European reinsurers observed in recent years is indicative of widespread underwriting issues, rather than a structural problem for the industry at large.

The firm attributed the poor large loss experience to the fact that reinsurers are generally taking a higher share of overall losses.

This seems to be driven by climate-induced changes to natural catastrophe activity, in combination with less disciplined underwriting practices, such as growing aggregate covers and lowering attachment points.

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