Asbestos Worries Outweigh EIL
Monday, November 13th, 2000 LiabilityThe adequacy of property-casualty insurer reserves for asbestos liabilities is more of a concern for the industry than that of environmental impairment liability, analysts at A.M. Best contend. "No, the industry is not adequately reserved for asbestos," Gerard Altonji, senior financial analyst, told National Underwriter several weeks before the Oldwick, N.J.-based rating agency released a special report on asbestos and environmental reserves in its Viewpoint publication, "Asbestos Claims Increasing; P-C Reserve Additions Expected." Mr. Altonji said that Best has not yet had an opportunity to revisit ultimate loss estimates it has referenced since 1997 of $40 billion for asbestos liabilities and $56 billion for environmental. For asbestos, he said, "our estimate is still $40 billion, but we believe it’s on the low side."
