Forum Brief: Asbestos compensation

Thousands of victims of asbestos-related diseases will receive compensation after a court decision which could cost insurance companies billions of pounds.

Five law lords overturned a Court of Appeal ruling which had denied compensation to victims because they could not prove which of several employers was responsible for their illness.

Forum Response: Association of British Insurers

John Parker, head of general insurance at the ABI, told ePolitix.com: "Insurers will welcome the clarity provided by today's ruling. It is good that the judicial process has now reached a definitive conclusion. Insurers need to be able to price risks and make reserves within a clear and stable legal environment.

"Insurers will pay compensation within the law as set down and interpreted today. Insurers reserve for these sorts of claims. Some of today's estimates of the cost of this judgement are wildly out of line with reality. Individual companies will all be in a position to meet their liabilities under the law.

"The Lords today have found in favour of people with this very serious disease and overturned a previous decision by the Court of Appeal. We will need to study the details of this ruling very carefully as soon as the reasons for the decision become available in order to establish the precise parameters of the law.

"We anticipate that similar claims falling within this judgement should now be handled quickly and the ABI will be providing advice to our members as soon as we can."