Perfluoroalkyl and polyfluoroalkyl substances (PFAS) are everywhere in the news lately. While insurance coverage issues related to PFAS claims are far from settled, some casualty actuaries have characterized this looming risk to insurance companies as “the next asbestos.” In this article published by Carrier Management, Milliman experts describe the state of litigation and science, and offer ideas on newer and more innovative methodologies that can help insurers set reasonable reserves. They discuss: 

• PFAS risk to insurers
• Policies potentially at risk
• Why traditional actuarial methods don’t work
• Stochastic modeling 
• The urgency to start reserving now so PFAS uncertainty doesn’t last forever

Read the full article here