Asbestos Losses Seen as “Manageable”

Although nine insurer groups experienced asbestos and environmental (A&E) losses of at least $100 million during 2009, up from six groups in 2008, the increase is still “manageable,” notes A.M. Best. “While some insurer groups remain underfunded for A&E reserves to varying degrees, the potential impact to their overall level of capitalization appears to be modest,” notes the report. The property/casualty industry is estimated to experience approximately $75 billion in asbestos-related losses and $42 billion in environmental losses, says A.M. Best.