Claims that involve hazardous materials have hampered many insurers during the past 50 years — and the forecast for the future remains bleak. One source of hazardous claims that many felt had been resolved years ago is asbestos. Once the insurance industry created a pool of funds to resolve all open claims, it believed that the matter was closed. However, today we’re seeing a resurgence of asbestos claims.

What’s unique is that, although many more asbestos claims are being filed against a growing number of peripheral defendants (the original defendants have been put out of business due to the number and amount of claims), many of these claims are being made by individuals who can’t prove they have an asbestos-related disability. But, even at this early stage, one thing is clear. The new claims surge will cost the insurance industry far more than it ever anticipated when the original insurance policies were sold.

The congress has made an effort to find a way to restrict asbestos-related lawsuits - now more than 600,000 - which are forcing companies into bankruptcy.