March 10, 2006—According to a report released by the American Academy of Actuaries’ Mass Torts Subcommittee, at least half a million more asbestos claims are expected to be filed over the next several decades.
The report also found that resources to compensate victims of asbestos diseases are limited and the litigation has resulted in at least 78 corporate bankruptcies.
Despite the huge costs, the asbestos litigation system has been inefficient, with only 41% of total spending reaching claimants, the report says. Two concerns identified in the report are: 1) the sickest individuals might not be compensated adequately or promptly, and 2) the majority of claimants in recent years have not shown signs of impairment, which has led to stricter medical criteria for bringing a claim in some forums.
The academy is a 15,000-member nonprofit, nonpartisan professional association representing all actuaries practicing in the United States. For more information, visit the Web site.
