Measurement of Asbestos Bodily Injury Liabilities

This paper presents a model for projecting an insurer's or reinsurer's potential asbestos bodily injury (BI) liabilities through an analysis of exposed policy limits. The model projects the ground-up aggregate liabilities of individual insureds, allocates those liabilities to policy years, and carves out the portion of the liabilities falling in the layers of coverage written by the insurer or reinsurer. That is, the underlying process of claim filings against the insureds is modeled and then compared to the insurer's or reinsurer's identified policy exposures.