| Claims that involve
hazardous materials have hampered many insurers during
the past 50 years — and the forecast for the
future remains bleak. One source of hazardous claims
that many felt had been resolved years ago is asbestos.
Once the insurance industry created a pool of funds
to resolve all open claims, it believed that the matter
was closed. However, today we’re seeing a resurgence
of asbestos claims.
What’s unique is that, although
many more asbestos claims are being filed against a
growing number of peripheral defendants (the original
defendants have been put out of business due to
the number and amount of claims), many of these claims
are being made by individuals who can’t prove
they have an asbestos-related disability. But, even
at this early stage, one thing is clear. The new claims
surge will cost the insurance industry far more than
it ever anticipated when the original insurance policies
were sold.
The congress has made an effort
to find a way to restrict asbestos-related lawsuits -
now more than 600,000 - which are forcing companies into
bankruptcy. |
