Best raises estimate of asbestos losses for property/casualty industry
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A.M. Best Co. Inc. raised its estimate of net ultimate asbestos losses for the U.S. property/casualty industry to $85 billion on Monday.
The figure represents an increase of $10 billion over the rating firm's previous estimate. Oldwick, N.J.-based A.M. Best noted that while the property/casualty industry has incurred nearly $74 billion in asbestos exposures and approximately $37 billion in environmental costs as of year-end 2011, asbestos-related claims will not abate in the near future.
“The increase in the asbestos estimate reflects the fact that the P/C industry continues to incur approximately $2.0 billion in losses per year while paying out $2.5 billion,” A.M. Best said in a report. “With no end to these losses in sight, and given that total funding for insurers' asbestos losses now has reached nearly $74 billion, it is clear that the asbestos problem will persist for many years to come.”
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