Asbestos Costs Rise For Defendants, Insurers The last two quarters have seen significant activity in reserve levels for many insurers. Much of this activity has centered around asbestos, focusing on both the adequacy of the reserves and the level of disclosure concerning the various components of these liabilities.

In addition, rating agencies have expanded their focus beyond just the amount of the reserves and changes from prior levels. They are now also paying attention to how the reserves were estimated.

Much of the discussion taking place between insurers and rating agencies, analysts, and regulatory authorities recalls the mid-1990s, when pollution was considered to be a "black hole" and exposure-based reserving methodologies were first being applied to these large mass torts.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.