Bloomberg News reported, “There could be a material deterioration in prior year profitability,” said David Masters, a London-based credit analyst at Moody’s. “There remains a risk that pleural plaques claims costs could spiral over time.”
The century old workers compensation programs have become stagnated in processing occupational claims. Huge delays in compensating victims of asbestos disease in Britain have been reported. This mirrors what is occurring in the US. Workers' Compensation systems that have also been dilatory in with the disposition of these claims for numerous reasons.
Rating agencies have indicated that costs for asbestos related disease through Europe may have significant impact upon the reserves of insurance carriers including large one like Zurich.
Asbestos exposure is a cause of latent and fatal diseases such as asbestosis, lung cancer and mesothelioma.
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