Asbestos and environmental losses will cost the US property and casualty market more than $121bn (£83.5bn), which could lead to AM Best downgrading insurers' ratings.
In a new report, AM Best said commercial insurers' reserves were almost 50% below the level they should be to cope with undiscounted asbestos and environmental liabilities. It predicted the industry would have a $33bn (£22.7bn) shortfall in asbestos liabilities and $24bn (£16.5bn) in environmental liabilities.
AM Best attributed the rising liabilities to a number of unfavourable developments occurring at the same time.
These included a growth in the number of bankruptcies of asbestos defendants, a spreading of asbestos-related litigation to secondary defendants and the recent peak of more serious asbestos-related illnesses.
AM Best said the shortfalls, exacerbated by the economic climate and earnings reduction, could lead to the down-grading of some insurers.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
