Due to a number of complex and inter-related factors, insurers have had major difficulties in developing a broad market for pollution liability insurance. This study explores some of the forces that have hampered development of a market. These include trends in the civil justice system that make it difficult to assess risk, Superfund legislation and regulations, adverse selection and the lack of a broad base of demand for the product. The report also contains an analysis of underwriting procedures and practices of property-casualty insurers writing pollution liability insurance during late 1984 and early 1985.
