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Posted on Wednesday, Aug 10, 2011

Mesothelioma and Asbestos-Related Insurance Claims on the Rise

Mesothelioma is a serious cancer that affects the lining of the lungs, abdomen or heart, caused by breathing in asbestos fibers.  Managing the countless doctors’ appointments, medical procedures and prescriptions needed to fight the disease is challenging enough, but managing the medical bills and associated insurance claims can be overwhelming.   However, according to an article by Reuters, insurance claims for asbestos-related diseases are on the rise, and the insurance companies are shoring up their reserves to ensure payments are made to the patients’ and their families.

Reuters reports that Metlife, Inc., the country’s largest life insurance company, has seen an 11 percent increase in claims related to asbestos exposure in the first half of 2011.  They received 2,306 asbestos-related claims January through June, as opposed to 2,076 claims during the same period in 2010.

This increase is in stark contrast to the steady decline that the industry had been experiencing over the last seven years.  Since 2003, Metlife had reported a 40% decline in asbestos-related claims. 

American International Group, Inc. (AIG) and Hartford Financial Services have both reported that due to the increase in claims, and the sizes of the claims, they have made “substantial additions to their asbestos reserves.”  In fact, this year AIG added more than $1 billion related to its asbestos exposure reserves.  According to A.M. Best, an insurance rating agency, the insurance industry may end up paying $75 billion in asbestos claims over time.

The heavy use of asbestos left workers and their families who breathed asbestos dust decades ago vulnerable to contracting asbestos-related diseases including asbestosis, mesothelioma and lung cancer. Although the use of asbestos has been curbed in the United States since the late 1970s, researchers at the University of Hawaii (UH) Cancer Center recently reported that the incidence of mesothelioma has been increasing in the United States and will continue to do so.

Mesothelioma has a long latency period, and those exposed to asbestos may not be diagnosed with the disease for 30-50 years after exposure.  UH researchers estimate that more than 20 million people in the United States are at risk of developing malignant mesothelioma due to asbestos exposure.

The insurance companies claim the incidence of mesothelioma and other asbestos-related diseases are on the decrease, but that successful lawsuits are driving up the number and severity of claims. Regardless of whether the number of mesothelioma cases is rising, mesothelioma victims and their families are hopeful that the claims will continue to be paid and they will see compensation for their medical care or for the death of their loved ones to the deadly disease.