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News report: Pleural plaques strike back

10 February 2010

A Scottish ruling leaves insurers on hook for billions.

Read more: asbestos

Insurers exposed to the UK property/casualty market could have to pay billions of pounds in claims should four insurers fail in their bid to appeal a legal ruling that gives victims of an asbestos-related illness the right to claim damages. This is in addition to an actuarial group raising its estimate of the cost to the UK industry of asbestos in coming years to £11bn ($18bn).

UK insurers Aviva and RSA Insurance, French insurer Axa and Swiss insurer Zurich Financial Services have appealed against January’s Scottish legal ruling that rejected their claims that certain asbestos-related conditions should not be covered under existing property/casualty products.

The four insurers had sought to overturn the 2009 Damages (Asbestos-related Conditions) (Scotland) Act, which allowed victims of pleural plaques – small areas of fibrosis found within the lung and diaphragm – to claim compensation.

The legislation reversed the 2007 Rothwell ruling in the UK’s...


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