Asbestos Losses Continue to Haunt P/C Insurers: A.M. Best

Net ultimate asbestos losses for the U.S. property/casualty industry have risen once again. They’re now at $100 billion, and that’s $15 billion higher than the previous estimate, according to a new A.M. Best report.

A number of factors appear to be behind that rise that may have no end in sight.

“The continued evolution of asbestos medical effectiveness through improved therapies, emerging drug combinations, and early diagnosis, combined with ever evolving litigation strategies, continues to make it difficult to put finality on the ultimate costs associated with asbestos liabilities,” the report said.

As part of that reality, the estimate reflects a continued trend “that the P/C industry continues to incur approximately $2.1 billion in losses per year while paying out nearly $2.5 billion,” A.M. Best said. “With no way of knowing where the end is, and given the total funding for the industries’ asbestos losses has now reached nearly $85 billion, it is clear that the asbestos issue will continue for years to come.”

Other findings in the report:

Source: A.M. Best