Liability Market

AM Best report on losses from asbestos and environmental claims

AM Best has reported that, while generally not a material drag on the US property/casualty (P/C) industry’s earnings, industry losses from asbestos and environmental (A&E) claims resumed an upward climb in 2012. Annual incurred A&E losses rose 12% in 2012 after a 31% decline in 2011. This comes amid a rising number of lung cancer lawsuits related to asbestos and evolving mass tort exposures on the environmental side, said Best. Yet industry funding of net A&E exposures has reached nearly $114 billion of estimated industry A&E liabilities of $127 billion, reflecting a close to 90% funding rate.