Briefing - Atlantic asbestos chasm widens.

(From Reinsurance)

In Europe, the incidence pattern of asbestos-related diseases is repeating the US equivalent, but with a time lag. The pattern of claims is therefore repeating too, but the differences in the ways these claims are handled will be important to the insurance industry.

In Europe, much of the cost of asbestos-related diseases has been covered by state health systems. In the US, the cost of these diseases is usually borne by private industry and its insurers. Non-governmental compensation in Europe has tended to come from the employer via employment law; in the US, the manufacturers of asbestos and materials containing asbestos have been pursued under products and premises liability.

Only a few companies are named in each action in Europe, but US cases can involve 60 or more companies as each worker is exposed to numerous products containing asbestos.

Legal system differences

Differences in the legal systems on each continent lead to different results. Civil trials in Europe are usually decided by judge and not by jury, whereas the opposite is true in the US.

Certain asbestos-related diseases cause a technical injury to the body, but do not interfere with its ability to function in daily life. The US allows compensation for these cases. In fact, the majority of US claims are for non-impaired claimants. This is further complicated by the fact that the diagnosis of non-impaired conditions can be supported only by the interpretation of X-rays, which can be subjective. Civil trials in Europe are less subjective because of more-informed rulings by judges. Compensation for non-impaired claimants, contingent fees for lawyers and class actions are also much less common in Europe.