I agree with you. Insurance companies are there to mitigate the risk of having sponsor assets committed/wiped out early, i.e. having the sponsor go bankrupt before all claims have come forward, which makes it critical for the sponsor to accurately forecasts how many claims they anticipate receiving/paying out on. Generally speaking, the formula is assets divided by number of anticipated payouts equals amount per individual payout.
I was on the “receiving” end once, and the other side a few times. In my posisiton, I end up being the guy who talks with my counterpart to fix the issue, while the lawyers argue it out.
But chemicals and parts aren't abuse cases.