Are You Prepared to Negotiate with an Asbestos Insurer?

As previously discussed on this blog, in recent months several large insurance companies, most notably Hartford Financial Services and American International Group, Inc. (AIG), have increased their reserve fund for asbestos-related claims. Last last week, MetLife, Inc., a flagship institution in the insurance business, joined Hartford and AIG in recognizing an increase in asbestos claims and costs. MetLife reported an 11 percent increase in asbestos claims during the first half of the year.

Why the increase in claims and what does that mean if you have an asbestos-related disease? The insurance industry line is that the attorneys who represent asbestos patients have become more effective at filing claims on behalf of people peripherally impacted by asbestos. Closer scrutiny reveals that the industry's argument likely has more to do with negotiations than with financial reality. Warren Buffett, the world's most successful investor, has acquired more than $3.5 billion in asbestos risk from AIG and other insurance companies since 2010 through his reinsurance arm, Berkshire Hathaway Reinsurance Group (BHRG). BHRG's move has been explained as taking advantage of its relatively strong financial condition and the insurance companies, hard hit by their overleveraged positions in the markets, relatively weaker balance sheets.

Fears | Nachawati knows how to speak insurance-ese. Understanding how insurance companies think - and how they manipulate the claims of victims and policyholders - is an important part of our legal specialty. We can see their arguments coming and know how to defend against them. If you've been diagnosed with an asbestos-related disease, you need our expertise. For a free consultation, contact us today at 1.866.705.7584 or send an email to info@fnlawfirm.com. We can help!