According to an article published by the London Times, reinsurance company Equitas warned that U.S. Senator Owen Hatch’s attempt to cap the soaring cost of asbestos-related compensation claims is expected to fail. The company, which was set up by Lloyd’s of London in 1996, also said it has raised its reserves against such claims by 296 million pounds. In total, Equitas has 4 billion pounds against asbestos-related claims as legal cases mount in the United States, according to the article.

The bill in question would force insurers and manufacturers to pay $114 billion into a central fund, but was stalled due to deliberation about whether the amount is sufficient.
Equitas Chief Executive Scott Moser called the chance of the bill passing “remote.”

According to the article, insurers have been vocal in support for the idea, as 50 percent of asbestos compensation awards are absorbed by legal costs. Under such a central fund, victims of asbestos-related diseases would receive a maximum compensation of $1 million without the courts becoming involved.