The Association of British Insurers (ABI) has paid out more than £1m since August 2001 to victims of asbestosis-related diseases.
These payments come from the fund it set up for this purpose following insurer Chester Street becoming insolvent last year. They are funded by a special levy on its member companies.
The ABI pays claims for those whose injuries date back to before 1972 as this is when employers' liability insurance became compulsory in the UK.
The ABI agreed to pay claims which arose during January and December 2001 - the period between Chester Street becoming insolvent and responsibility switching to the Financial Services Compensation Scheme.
Head of general insurance at the ABI John Parker praised the scheme, saying: "A large number of people are now receiving payments for asbestos-related diseases who otherwise would have been left without compensation.
"The ABI's involvement in this issue will come to an end once we are satisfied that all relevant claims have been passed to us and paid," he added.
