Asbestos exposure is creating a rift between insurers and reinsurance companies that back them, said Standard & Poor's Ratings Services in a new study.
In a report released today entitled "Asbestos Driving a Wedge Between Insurers and Reinsurers," the New York-based ratings agency argued the reinsurance community as a whole has not stepped up to adequately address asbestos risks.
The reinsurers have been expected to share more of the burden by leading property-casualty insurers who have been putting up massive increases in their reserves for future payouts, the S&P said.
"Disputes between insurers and reinsurers appear to be intensifying. The tone is getting ugly," said Steve Dreyer, managing director at S&P.
