Providing Reserve Analysis for Power Plants in Asbestos Matters

For over 20 years, NERA has provided periodic liability forecasts for several power plants, projecting and valuing future personal injury claims brought by construction workers allegedly exposed to asbestos at the power plants. We combine behavioural economics with scientific analysis to model the incidence of disease and the number of workers likely to bring a claim against the utilities. Using company-specific data on past settlement trends and values, we estimate future values. In our analysis, we account for factors that may affect the projected filings, payment rates, and values of the claims. These factors include disease, age of claimant, docket assigned, plaintiffs’ law firm, and changes to the litigation environment over time. Utilities incorporate our analysis in their reserves, and we discuss the results with their auditors.