The insurance industry is prepared for the asbestos time bomb, according to insurers and actuaries.
Last week, doctors warned that the UK is on the verge of an asbestos epidemic. Professor Tom Tre ...
The insurance industry is prepared for the asbestos time bomb, according to insurers and actuaries.
Last week, doctors warned that the UK is on the verge of an asbestos epidemic. Professor Tom Treasure of Guy's Hospital in London said: "The peak of the epidemic is expected in 2015 to 2020 when the death rate is likely to be 2,000 per year in the UK."
Despite media hype actuaries and insurers have said that these figures are not new and are consistent with previous predictions.
Darren Michaels, a consultant at actuary Tillinghast said: "The latest figures are not out of line with earlier studies. In fact the predictions have been gradually coming down since 1991."
Michaels also said that insurers would not face the same problems from UK asbestos claims that have been witnessed in the US.
"There are differences in the legal systems. Significantly, in the UK people with no impairment from asbestos exposure will not be awarded damages, which is the case in the US."
Insurers denied they would need to increase their reserves. Royal & SunAlliance technical insurances manager Phil Bell said: "The figures are in line with figures already published by the HSE, and have already been factored into our reserving methodology."
The settlement was reached at a time when parties have been cautious of settling claims, owing to uncertainties surrounding the future of a proposed US trust fund to meet claims.
DLA partner Charles Gordon said: "There is likely to be a better climate for settlements going forward. It shows that settlements can be reached if they meet properly recognised criteria."
