US INSURERS’ ASBESTOS OUTLAYS RISE 9% TO 1.2BN IN 2016: REPORT

Total insurer outlays for US asbestos claims grew 9% to $3.2bn in 2016, exceeding the long-term annual average of $2.4bn, according to a report by AM Best. However, incurred asbestos losses during the year fell 24% from 2015, driving a 17% decrease in total asbestos & environmental incurred losses for the year. As of the end of 2016, Best’s estimates for net asbestos losses for the US remained unchanged at $100bn and its estimate for net environmental losses was unchanged at $42bn. Best also found that the US property/casualty industry had reserves for just under 90% of total asbestos & environmental exposures, leaving around $13bn in unfunded asbestos liabilities and $1bn in unfunded environmental liabilities. The report also said that the industry paid around $17.6bn in asbestos and environmental claims from 2012 through 2016 while incurring $13.6bn in losses.