Environmental Issues

The uncertainties normally associated with the reserving process are even greater when dealing with potential claims arising from exposure to asbestos, lead, radon or other hazardous materials. Toxic waste sites and leaking storage tanks also present unique loss reserving problems. It is extremely difficult if not impossible for an insurer or self-insurer to project their potential liabilities due to environmental type exposures. The lack of historical statistics as well as the changing interpretations of coverage or exposure are major reasons contributing to the problem. The panel will review the unique reserving issues associated with environmental claims and will discuss methods used when reserving for such claims. In addition, the panel will explore the next generation of environmental claims.