Legacy asbestos is an ongoing headache for healthcare providers and insurers alike.

Headlines about asbestos and environmental disasters might seem like relics of the past, but the truth is, they’re still impacting the insurance industry today. A recent report by Reinsurance News, based on an analysis by AM Best, highlights that asbestos and environmental (A&E) losses for U.S. insurers are holding steady – meaning they’re not going away anytime soon.

Still a Steady Presence for Insurers

The report notes that these losses aren’t skyrocketing. But don’t think insurers are off the hook. While many asbestos claims are from long ago, they’re still seeing new claims and payouts happening. Think of it like a slow burn, not a wildfire. Environmental claims, with their unpredictable nature, also add to the ongoing costs.

So how are insurance companies dealing with this? Well, they’re employing a mix of strategies. They’re setting aside reserves to cover potential losses, they’re actively working on settlements, and they’re focusing on better risk management to mitigate the financial hit.

The key takeaway from this report? While things might feel stable right now, the unpredictable nature of these A&E claims and potential changes in laws and regulations mean insurers can’t let their guard down. It’s still a big factor in their overall financial health. This isn’t a crisis spiraling out of control, but it’s a persistent challenge that the insurance world continues to grapple with. So, while it might not be front-page news anymore, the impact of asbestos and environmental issues is still very much a part of the insurance landscape.

How the Lanza Controversy Delayed Justice

We just discussed how the insurance industry continues to grapple with the ongoing costs of asbestos claims 1. But the story is much more complex and, frankly, infuriating than just insurance payouts. It’s important to understand how we got here and the role that deception played. One particularly notorious example is the case of Dr. Anthony Lanza. A seemingly authoritative figure in epidemiology in the early 20th century, Lanza was ultimately willing to suppress vital information about the dangers of asbestos.

Employed by Metropolitan Life Insurance Company (MetLife), Lanza conducted X-ray examinations of asbestos workers between 1929 and 1931. His findings were alarming: he determined that asbestos was indeed a cancer-causing substance, responsible for serious health conditions in workers. However, bowing to pressure from the asbestos industry, Lanza agreed to modify his published findings. The result was a medical report that deliberately downplayed the seriousness of asbestos exposure. This wasn’t just scientific oversight; it was a calculated attempt to protect profits at the expense of human lives.

Had Lanza’s research been left unaltered, it is possible that asbestos litigation would have gained traction at a faster rate, and federal regulation would have happened much sooner than the mid-1980s. Instead, a familiar pattern of coverup and deception continued to rule the industry for another four decades, which is how long it typically takes for exposure symptoms to appear. This delays justice and leaves countless workers and communities vulnerable to the deadly consequences of asbestos. This tragic chapter highlights how the pursuit of profits can lead to the deliberate suppression of truth, the consequences of which the insurance industry, and ultimately, all of us, are still dealing with today. This underscores the importance of holding companies accountable and ensuring transparency in all industries to safeguard the health and well-being of all.

Asbestos Trusts and Bankruptcy

The immense scale of the asbestos tragedy led many companies to bankruptcy due to overwhelming liability. To ensure victims still had recourse, bankruptcy courts often required these companies to establish asbestos trusts, which act as pools of funds from company assets, insurance, and sometimes profits. These trusts provide a more streamlined process for compensation, avoiding lengthy court battles. Victims file claims, providing proof of exposure, work history, and medical diagnoses to receive varying levels of financial relief.

The legal basis for holding companies liable for asbestos-related illnesses is rooted in several key areas of law. First, product liability comes into play. Companies that manufactured, distributed, or sold asbestos-containing products could be held liable for failing to warn consumers or workers about the dangers of their products. Secondly, negligence is often a key factor. If a company knew or should have known about the hazards of asbestos and failed to take reasonable steps to protect its workers or the public, it can be found liable. Finally, in some cases, companies can be held liable for intentional misconduct if they actively concealed the dangers of asbestos for financial gain.

It is the combination of product liability, negligence, and in some instances, intentional misconduct that gives the courts the basis to award compensation to victims who have been harmed by asbestos exposure. These legal principles provide a framework for holding companies accountable for their actions and ensuring that those who have suffered from the consequences of asbestos exposure receive the justice they deserve.

Asbestos Abatement

Even today, the danger of asbestos isn’t entirely a relic of the past. While many products containing asbestos are now banned, there are countless buildings and infrastructure that still contain asbestos-containing materials. This is where asbestos abatement becomes critical. Abatement refers to the process of removing, repairing, or encapsulating asbestos materials to prevent the release of harmful fibers into the air. This is a specialized task that should only be undertaken by trained and certified professionals using proper equipment and safety protocols. Safe abatement practices are crucial for protecting workers and the public from the ongoing risks of asbestos exposure and are an important part of ongoing efforts to mitigate the legacy of this dangerous substance.

Takeaway

Documents revealed through litigation have shown that many companies were well aware of the dangers of asbestos as early as the 1930s, yet they actively suppressed this information. They chose to conceal the truth from the public, from their workers, and even from doctors and regulatory bodies. The sheer scale of this cover-up and the extent of the deception highlight the importance of ethical conduct, corporate responsibility, and ensuring that victims of wrongdoing have the opportunity to receive the justice they deserve.