Insurance consultants Tillinghast-Towers Perrin have released figures contained in a report which estimate that ultimately claims from asbestos will reach $200 billion.
One of the most significant findings concluded that claims, which were expected to decline, as the use of asbestos in building materials was effectively banned over 20 years ago, have actually increased. “Although most thought that the claims would have trailed off by now, the number of plaintiff filings has increased dramatically, with 50,000 to 60,000 claims filed against some defendants in the last year, compared to averages near 20,000 in the early to mid 1990’s,” said Jenni Biggs, a consulting actuary with T-TP.
Asbestos related claims now constitute the largest net cost to insurers ahead of environmental claims. T-TP actuary Mike Angelina said that over 450,000 claims have already been filed, and that the total number will approach 1 million “before the litigation ends.”
T-TP estimates that the ultimate costs to the U.S. insurance industry, which will bear around 30 percent of total claims payments, will range between $55 and $65 billion.
The largest portion of claims settlements will be paid out by by manufacturers, suppliers and other users of asbestos products – about 39 percent – and “31% will be borne by overseas insurers (including London, Continental Europe, Asia, Australia and South America).”
The full results of the study and a review of the litigation aspects may be obtained by contacting Tracy Spencer at Bliss, Gouverneur & Associates by e-mail at: firstname.lastname@example.org; or by phone at: 1 212 840 1661.
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