Insurance Companies Look For Option To Soften The Asbestos Blow -- MesoLink.org -- 09-27-04

Over recent years, many cases of malignant mesothelioma have come to light in countries all over the world.

This is a deadly form of cancer that can affect the heart, abdomen, or lungs, and is caused by exposure to disturbed asbestos and asbestos products. Because the cancer can take twenty to forty years or more to develop, many of the people that are being diagnosed today are those that worked with asbestos several decades ago, unaware of the dangers of this material.

As a result of this, a large number of manufacturers and companies that are being held responsible for this exposure and being sued for billions of dollars, and the insurance companies are really feeling the brunt of these claims.

A trust fund bill that was proposed earlier this year gave insurers hope, as a lump sum donation to the fund would have given them immunity against further claims. However, the bill failed to pass through senate. A new bill is now being proposed, but is still in its developmental stages.

In the meantime, insurers have tried a number of tactics in order to reduce claims. Some insurers are making bulk settlements in order to minimize on court costs; other insurers hope to share the cost of litigation by pursuing claims with other insurers; and some insurers have developed regulation regarding the medical criteria for fresh claims with relation to the evidence required.