U.S. INSURERS
STILL FUNDING ASBESTOS, ENVIRONMENTAL LIABILITIES: A.M. BEST
Source: http://www.insurancejournal.com, January 5, 2015
The current estimate of net asbestos losses for the U.S.
property/casualty industry remains at $85 billion, with net environmental
losses estimated at $42 billion, according to a new Best’s Special Report.
According to the Best’s report titled “U.S. Insurers
Continue Funding of Asbestos & Environmental Liabilities, Despite Elusive
End Game,” the industry had funded slightly more than 90 percent of its
aggregate asbestos and environmental (A&E) exposures as of year-end 2013.
This translated into an unfunded liability of $6.7 billion for asbestos and
$3.9 billion for environmental.
The report also notes that incurred losses have
increased in five of the past seven years.
A.M. Best said it recognizes that ultimate exposures
cannot be known with precision, especially regarding asbestos claims.
Nevertheless, funding efforts continue, as most recently seen in sizable
additions to A&E reserves during 2014 by Travelers Group, Hartford
Insurance Group and Liberty Mutual Insurance Cos. In aggregate, these three
insurers added nearly $690 million to net A&E reserves in 2014, with most
of the strengthening on the asbestos side, according to the report.