Press Release - NOVEMBER 20, 2019

AM BestTV: U.S. Property/Casualty Industry Funded 90% of $146 Billion in A&E Exposures, Says AM Best Director


CONTACTS:
 Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK - NOVEMBER 20, 2019
In this AMBestTV episode, AM Best Director Brian O’Larte says the U.S. property/casualty insurance industry has funded about 90% of the estimated $146 billion in net U.S. asbestos and environmental (A&E) losses. Click on http://www.ambest.com/v.asp?v=aande1119 to view the entire program.

The industry has paid out $16.8 billion in A&E claims over the past five years while incurring $12 billion in losses. O’Larte highlighted A&E developments in 2018, noting the larger impact asbestos continues to have.

“In 2018, asbestos paid out $2.6 billion and only incurred $1.4 billion,” said O’Larte. “Over more than five years, payments have been a lot larger than incurred. On five years alone, asbestos paid out $14 billion compared to only $9 billion in incurred.”

O’Larte also addressed the potential impact of evolving litigation regarding talcum baby powder.

“That is a real unknown. Johnson & Johnson has claimed there was no asbestos in its baby powder. However, if there were, it would probably put pressure on insurers. It is a huge unknown in the industry. Some of the large players still do not think there is any kind of action against them, but only time will tell. No one is sure how it is going to play out in the courts.”

To access a copy of this market segment report, titled, “Asbestos and Environmental Payouts Continue to Outpace Incurred Losses,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=290972 .

Recent AMBestTV coverage includes:


  • Europe Reveals an Insurance Industry Adapting to Non-Stop Change, Say Execs at AM Best Briefing: Attendees to AM Best’s Insurance Market Briefing - Europe, held in London, said the ongoing evolution of Lloyd’s, insurance technology and regulatory frameworks are building a culture that is learning to anticipate and adapt to change: http://www.ambest.com/v.asp?v=imbe1119 .

  • U.S. Life Fraternals Could Harness Social Media and Education to Grow Membership, Say AM Best Analysts: Edward Kohlberg, director, and David Marek, financial analyst, both with AM Best, explain how U.S. fraternal life insurers are challenged by a competitive middle market and shrinking consumer wallet, but could see potential growth through education and tapping into social media: http://www.ambest.com/v.asp?v=fraternals1019 .

  • Title Insurance Stable, but Potential Challenges Include Sluggish Economy: Associate Directors Fred Eslami, Ann Modica and David Blades, all of AM Best, discuss the headwinds and tailwinds driving the title insurance market: http://www.ambest.com/v.asp?v=title1119 .

  • Capacity Crunch Looms in Retrocession Market: Attendees at the Singapore International Reinsurance Conference (SIRC) in Singapore said that as a result of additional catastrophe losses in 2019 and trapped capital in the insurance linked-securities market, the demand for retrocession insurance may outpace supply, pushing prices higher: http://www.ambest.com/v.asp?v=sirc21019 .

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 http://www.ambest.com/multimedia/ambtvsignup.html . View AM BestTV episodes at http://www.ambest.tv .

AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.