AM BestTV: AM Best Director Discusses Factors Behind Raised Estimate for Insurance Asbestos and Environmental Exposures
OLDWICK, N.J.--(BUSINESS WIRE)--Jan 18, 2019--In this episode of AM BestTV, Brian O’Larte, director, AM Best, discusses a recent market segment report that examines insurers’ obligations for asbestos-related and other environmental liabilities and why payouts are not as quickly as some had expected. Click on http://www.ambest.com/v.asp?v=aande119 to view the entire program.
AM Best recently increased its estimate of net ultimate losses for asbestos and environmental to $146 billion, precipitated by a spike on the environmental side. Overall losses have not slowed down, and the industry continues to pay out more each year than it is incurring.
O’Larte discussed why AM Best upped its net ultimate environmental loss for the U.S. property/casualty industry to $46 billion — $4 billion more than its previous estimate.
“The main reason for the increase is that the decline in the payout patterns is not happening as quickly as anticipated,” said O’Larte. “This is largely due to the developments of original sites being a lot more toxic than originally thought, as well as the increase in cost of the clean-ups and defense.”
AM Best maintained its $100 billion net ultimate estimate for asbestos losses. In the episode, O’Larte also discusses whether recent policy changes at the U.S. Environmental Protection Agency, as well as recently tried Johnson & Johnson cases, could change the estimate.
To access a copy of this market segment report, titled, “No Slowdown in Asbestos and Environmental Claims,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=280455.
Recent episodes of AM BestTV include:Standing Up to Risk: The Events and Issues That Built Today’s Insurance Industry: In a hour-long documentary, AM Best analysts and editors examine the catastrophes, social, regulatory and technological developments that reshaped an industry and set the trajectory for tomorrow’s insurance and risk management environment: http://www.ambest.com/v.asp?v=reviewpreview2018. Southeast Asia a New Front in Insurance Innovation, Says MassMutual Managing Director: Douglas Russell, managing director, MassMutual Ventures, discusses the importance of leveraging insurtech from many angles: http://www.ambest.com/v.asp?v=russell119. You Think Innovation Is Hard? Try Measuring It, Says SAP Senior Director: Patricia Saporito, senior director, Global Center of Excellence for Analytics, SAP, said insurers have embraced the need to rapidly leverage new technologies and capabilities, but many are still wrestling with how to build innovation into their organization: http://www.ambest.com/v.asp?v=saporito119.
AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at. ViewAMBestTV episodes at.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visitfor more information.
Copyright © 2019 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190118005286/en/
CONTACT: Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 01/18/2019 10:00 AM/DISC: 01/18/2019 10:01 AM