It’s been a long time since an insurance company won a court case related to asbestos-related injury. But that’s exactly what happened in the British High Court last week when AIG successfully defended an asbestos-related claim.

Insurers predict asbestos-related illnesses in Britain are likely to cause up to 40,000 deaths over the next 20 years, and US insurers estimate total claims they face could exceed $US100 million a year.

Last week’s judgment has been hailed as “the biggest single decision in the history of insurance law”. While that may be overstating the case somewhat, the reasons for the High Court judgment may enable British insurers to save billions in settlements.

In this case, the widow of a building contractor who died of mesothelioma sued Leeds City Council and a factory owner for $450,000, claiming her husband contracted the disease while stripping their properties of asbestos.

But medical experts said he may have been exposed to a third source of asbestos not connected to the case. With this element of doubt introduced, the claimant’s case collapsed.