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.
