New Asbestos Suits Hit Insurers Directly
The newest twist on the asbestos liability problem could impose direct liability on property-casualty insurers, according to a report recently published by Moody's Investors Service.
In a report entitled, “Rising Asbestos Losses Pressure Ratings of Commercial Insurers,” analysts from the New York-based rating agency describe trends giving rise to mounting asbestos-related problems for p-c insurers, warning that asbestos underfunding might be the principal driver of rating downgrades for p-c insurers in 2002 and beyond.
After recapping some well-reported adverse trends (such as asbestos-related bankruptcies and suits against peripheral defendants that have produced a spike in claims frequency in the past two years), Moody's reports that an infrequent event–class actions seeking to impose “direct liability” on p-c insurers–is a “troubling legal trend.”
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