Law360 has published another opinion piece that I authored — a follow-up to “Policyholders Must Object to Insurer Reorganizations,” which I penned for the outlet earlier this year.

In this latest effort, titled “Insurance Industry Asbestos Reserve Estimates Are Unreliable,” I look at 25 years of asbestos reserving by the insurance industry, as reported by the credit rating agency AM Best. Analysis of this consistent set of data over a long period offers unique insight into the reserving practices of the insurance industry. What becomes obvious is how consistently wrong the reporting and opinions of insurance company actuaries and their auditors have been in setting realistic levels of loss reserves. It is my hope that this latest piece gives explanation as to why actuarial and audit opinions should be treated with deep skepticism.

As I write: “Given that reality, regulators should be far more circumspect before waving through insurance company reorganizations that depend entirely upon those estimations.”

For some time, I have been writing on our blog and for industry media outlets about the disaster of insurance company regulation, particularly the OneBeacon and Arrowood transactions.

You can read this latest article on the Law360 website. A subscription may be required. Or you can download it here.