In the 1980’s the Insurance and Reinsurance industries recognised a threat to their survival; the emergence of bodily injury and property damage claims, arising in the USA, allegedly caused by exposure to asbestos, pollution of the environment and hazards to health through exposure to various toxic substances. (APH claims).

Although US liability claims are often problematic, what made APH claims so difficult was their latency. Industrial pollution had continued in the USA for some 100 years but only recently has public concern arisen. Diseases caused by exposure to asbestos can take 50 years to develop.

Insurance premiums, terms and conditions, set many years ago, had not taken into account such contingencies. Moreover, insurers held very little in reserve to pay these claims.