Travelers Insurance Company (TRV.N) put 25 percent more into its asbestos claim reserves this year than it did last year. It's the latest large insurance company that has indicated that problems stemming from asbestos issues are worsening. The company recently announced that is involved in more litigation and significant payouts connected to asbestos related injuries.

However, although such claims are on the rise, the medical community reassures that the actual incidence of asbestos related illnesses, such as mesothelioma, are declining. For cases that emerge, doctors opt for more aggressive treatment, which contributes to rising costs for insurers.

Asbestos was at one point a popular insulating material, but is now known to cause severe lung diseases. Claimants say that insurers such as MetLife knew about the harmful effects of asbestos as long back as the 1920s. Yet insurance companies continue to deny any such knowledge about asbestos.

Numerous insurers, including Lloyd's of London, almost experienced financial ruin due to asbestos claims. Despite the avoidance of asbestos for new construction since the 70's, victims of asbestos exposure often do not learn about their illness for at least 30 years. 

According to A.M. Best, a ratings agency, the industry faces roughly $75 billion in exposure to asbestos claims, suggesting that some insurers are still not fully reserved for claims that they may inevitably face.