A.M.BestTV: Asbestos Claims Dropped 38% in 2014

OLDWICK, N.J.--()--This second in a series of “First Monday” episodes highlights A.M. Best Assistant Vice President Gerard Altonji, who discusses how insurance industry losses from asbestos and environmental (A&E) claims dropped sharply in 2014. Click on http://www.ambest.com/v.asp?v=fmasbestos1215 to view the entire program.

The next “First Monday” episodes will include a focus on European insurers’ strategies to look overseas for growth due to saturated domestic and difficult economic markets and the buying trends, barriers to growth and regulatory challenges taking place in the Asia-Pacific region. “First Monday” is A.M. Best’s monthly program featuring commentary by the company's leading analysts.

A.M. Best’s annual analysis of the A&E industry concluded that incurred losses for U.S. A&E exposures declined 33% in 2014. These incurred losses were driven by a 38% drop in asbestos losses and a 15% decrease in environmental losses. Additionally, A.M. Best has estimated net asbestos losses in the U.S. property/casualty industry to be $85 billion.

“Incurred losses dipped significantly in 2014, which is the first decrease we have seen in several years,” said Altonji. “As paid losses continue to rise, there doesn’t seem to be an end to asbestos litigation, since such a large number of people have been exposed and are living longer with the illness.”

Altonji also added that the potential for large settlements remains extremely probable, as medical care expenses that are related to taking care of people directly or indirectly exposed are very costly.

Recent episodes of A.M.BestTV include:

  • Pricing Erosion Threatens U.S. Workers’ Compensation Line: A.M. Best Senior Financial Analysts Gordon McLean and Brian O’Larte, discuss how future underwriting results in the U.S. workers’ compensation segment could be hampered by rate softening: http://www.ambest.com/v.asp?v=fmworkcomp1215.
  • Risk Takers: Many Paths to Starting an Insurance Company: Interviews from Best’s Review Senior Associate Editors, Kate Smith, Lori Chordas and Angelo Lewis, on the cover story of the December issue of Best’s Review, titled, “Risk Takers”: http://www.ambest.com/v.asp?v=risktakers1215.
  • Skipping the Desktop: Technology Upends Asia’s Insurance Markets: At the recent Pacific Insurance Conference in Manila, Philippines, attendees said the proliferation of technology in the Asia Pacific region makes social media and smart phones the best way to reach the region’s youthful population: http://www.ambest.com/v.asp?v=21215nc.
  • Regulation is Driving Insurance Activity: At the annual A.M. Best Insurance Market Briefing – Europe, in London, A.M. Best Chief Rating Officer Stefan Holzberger said European insurers have been focusing on capital in anticipation of Solvency II, while insurers in the Middle East and elsewhere are responding to increasing regulatory constraints: http://www.ambest.com/v.asp?v=holzberger1115.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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Contacts

A.M. Best
Lee McDonald, 908-439-2200 ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com

Contacts

A.M. Best
Lee McDonald, 908-439-2200 ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com