Insurance Industry Study Affirms 50 Percent Shortfall in Estimated $121 Billion Net A&E Losses

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OLDWICK, N.J. - A.M. Best Co. concluded in its most recent study of the insurance industry's exposure to asbestos and environmental (A&E) losses that the property-casualty industry was likely to incur upwards of $121 billion in net A&E losses, of which it is only funded for approximately 50 percent.

The special report, 'Final Data Support A.M. Best's Projection of A&E Reserve Shortfall,' was released Nov. 5.

Its findings were consistent with previous estimates A.M. Best released in October 2000 and May 2001. Last May, A.M. Best increased its estimate of asbestos losses to $65 billion, up from a 1997 …