Asbestos cost claims rise even as volumes fall
The number of asbestos-related liabilities is holding relatively steady. According to a new study from NERA Economics, while some related diseases have declined, others have become more prevalent – while the amount spent per resolved claim rose by double-digits in the last year, suggesting failing to deal with the dangerous material will have an increasingly costly legacy.
Asbestos is a naturally occurring silicate mineral – consisting of thin, fibrous crystals. Due to its light weight, insulative properties, fire-resistance and cost, it has been a popular building material throughout a huge period of human history – with asbestos fibres being found woven into textiles as far back as 2500BC. But scientific advances in the last century have called this ancient relationship into question.
Over the 20th century, a mounting body of evidence showed that once asbestos entered the lungs, it could not be expelled. Instead, its microscopic fibres scarred tissues, triggered inflammation, and contributed to deadly diseases like mesothelioma, lung cancer and laryngeal cancer. This led to more than 60 countries banning it, while in others it was increasingly phased out.
Organisations who have not phased the material out have faced litigation for the negative impacts it has had on the lives of tenants and staff alike. According to NERA Economic ’ annual review of asbestos-related liabilities for companies, this has been in decline in recent years – something which has roughly continued over 2024.
The number of claim filings across all diseases relating to asbestos exposure is holding firm at a decades-long low. This included mesothelioma incidence (a type of cancer that develops from the thin layer of tissue that covers many of the internal organs, most common on the lungs) declined 4%, and overall has declined 14% since 2015, after an earlier eight-year plateau.
However, the costs per claim actually rose – showing that organisations have a lot of work to do yet, if they want to mitigate their asbestos risks. 2024 saw 12% higher dollars per claim than 2023 – a seventh consecutive year of an increase and a cumulative rise of 191% since 2017. That came amid a 2% rise in lung cancer cases related to asbestos. But, as the researchers suggest these are typically costly than mesothelioma claims, if this trend continues, claim feed may drop again.
The future
Remaining asbestos in the built environment is causing a steady amount of harm to the public – and costing organisations significant amounts in compensation. But while the figures in NERA’s study may suggest a steady decline in claims, looking ahead, things may be about to get a lot worse on both fronts.
As with many other aspects of public life, the rise of right-wing populism in the political mainstream is seeing that progressed pushed back. Donald Trump famously alleged in his 1997 book Trump: The Art of the Comeback that asbestos was “100 percent safe, once applied” – and while that point is still not supported by the best available science, his second White House administration is reportedly lobbying for relaxation of asbestos regulations.
In the UK, the country’s ‘special relationship’ with the US may also be holding back its own attempts to tackle asbestos deaths. More than, 5,000 people still die from Asbestos related diseases in the UK every year according to the Health and Safety Executive – and in November 2024, Prime Minister Keir Starmer announced support for a campaign which asked the government to strip asbestos out of schools and hospitals. Since the change of US government, however, no further update has been issued on this front.
