Swiss Re and Munich Re have revealed they are seeking to exclude asbestos cover from liability classes.

The world's two largest reinsurers confirmed they are falling into line with other European reinsurers by toughening their stance on employers' liability.

The announcement follows a wave of similar moves by reinsurers across Europe to impose new exclusions on renewals business.

A Swiss Re spokesman said: "Our group stance is to move towards excluding such risks. However, we address the exposures we are asked to underwrite on a case-by-case basis, and in the right circumstances, we will offer cover."

Munich Re said it would base its asbestos decisions on a country-by-country basis. A spokesman said: "Excluding asbestos from public liability policies was imperative in light of the new asbestos regulations."

Allianz Cornhill liability manager, Steve Maguire, said the reinsurers' decision could leave primary insurers to carry the risk.

He said: "Its another situation where the reinsurers are walking away and leaving the problem to the primary carriers."

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