Rise in reserve cover for asbestos claims

There has been a substantial increase in asbestos claims filed against property/casualty insurers in the US after several major asbestos manufacturers filed for bankruptcy protection. As a result of this the US insurance industry is expected to set aside between $20mn and $40mn this year for asbestos liability. In turn this increased liability could cause a downgrade in ratings for some companies within the industry, according to a recent report released by Standard & Poor’s.