Latency Catastrophes — Will There Be Another Asbestos?

An underwriter can be deemed the wizard of the insurance industry, peering into his/her magic ball to ensure they are well-positioned to react to a culture shift in an ever-changing market.

Bob Reville delved into these proverbial underwriting powers as he wondered what the next “latency catastrophe” may be in his article, “The Job of Underwriting and the Next Asbestos.”

The next asbestos is continuously in the forefront of underwriters’ risk analyses as they work to protect their carrier employers from the financial turmoil that such claims have caused over the last thirty years.

Yes, asbestos issues were a big problem for everyone

Asbestos insurance effects have been enormous, resulting in tens of billions of dollars paid to claimants and their counsel, with claims remaining that may push the total into some hundreds of billions. That certainly gives an underwriter pause for thought.