Over the last three years, there was an average of $16 billion in significant insured losses in Europe, while, over the last 10 years, the average stood at $9 billion – the market is currently at around $10 billion when you include recent Spanish losses, the vast majority of which will not impact the reinsurance market itself, but rather the local Consorcio. So, depending on what happens in the rest of this year, he said, the market could see a lower loss ratio year than has been seen on average in the last three years. Guy Carpenter believes if that is the case, it should feed through to the way reinsurers are looking at clients in Europe – not in the context of America’s loss results, but rather on a case-by-case basis.
