ENDOCRINE DISRUPTING CHEMICALS (HIGH IMPACT, 4-10 YEARS)
1. Endocrine disrupting chemicals (EDC) are substances which can interfere with hormonal systems. First evidence for potential endocrine disrupting properties of certain substances was obtained from observations of reproductive disorders in animals.
2. There is a growing concern that maternal, foetal and childhood exposure to EDC could have a stronger role in causing many endocrine diseases and disorders than previously believed. Human health disorders possibly related to EDC include breast and ovary cancer, testes and prostate cancer, genital malformations, retarded sexual development, declining sperm counts, obesity, and neurological disorders such as retarded memory development. However, establishing a clear relationship between particular EDC and human health disorders has so far been difficult due to the ubiquity of EDC and the diversity of environmental contaminants.
3. The establishment of a direct link between EDC and human health problems would have profound consequences for various types of liability insurance. Besides triggering higher than expected losses, it could ultimately lead to a rise of liability rates.
ELETROMAGNETIC FIELDS (HIGH IMPACT, >10 YEARS)
1. The ubiquity of electromagnetic fields (EMF) raises concerns about potential implications for human health, in particular with regard to the use of mobile phones, power lines or antennas for broadcasting. Over the last decade, the spread of wireless devices has accelerated enormously. The convergence of mobile phones with computer technology has led to the proliferation of new and emerging technologies. This development has increased exposure to electromagnetic fields, the health impacts of which remain unknown.
2. Anxiety over the potential risks related to EMF has risen. Studies are difficult to conduct, since time trend studies are inconsistent due to the still rather recent proliferation of wireless technology. The WHO has classified extremely low-frequency magnetic fields and radiofrequency electromagnetic fields, such as radition emitted by cell phones, as potentially carcinogenic to humans (Class 2B carcinogen). Furthermore, a recent ruling by an Italian court suggested a link between mobile phone radiation and human health impairment. Overall, however, scientific studies are still inconclusive regarding possible adverse health effects of EMF.
3. If a direct link between EMF and human health problems were established, it would open doors for new claims and could ultimately lead to large losses under product liability covers. Liability rates would likely rise.
NANOTECHNOLOGY (HIGH IMPACT, >10 YEARS)
1. Nanotechnology refers to the manipulation of matter on an atomic and molecular scale. Nano-sized particles exhibit unique properties relative to larger particles of the same substance. This enables new applications, but may also pose new risks.
2. Currently, little is known about the toxicity of nanomaterials or the potential for latent illness that could affect workers and consumers. Additional research in life cycle assessment of nanomaterials and products containing nanomaterials is necessary to better assess the potential exposures. However, there is some evidence that certain nanostructures may accumulate within tissues and organs and can be absorbed by individual cells. Adverse health effects have been observed in studies of material such as carbon nanotubes, nanoparticles of titanium dioxide, or silica nanoparticles.
3. Due to the relatively unknown environmental, health and safety exposures arising from nanomaterials throughout their life cycle, nanotechnology presents the insurance industry with significant challenges. Of key concern are delayed impacts, i.e. the question whether nanomaterials hold some latent hazard. Similar to the asbestos case, there is potential for large losses under product liability, workers‘ compensation and environmental liability policies.
COMMUNICATIONS PATTERNS (MEDIUM IMPACT, 1-3 YEARS)
1. When it comes to mobile phones, exposure to electromagnetic fields with potentially detrimental implications to human health is a well-known liability concern (see “Unforeseen consequences of electromagnetic fields“ on page 11). However, the ubiquitous use of mobile phones may also have other implications for liability covers.
2. Millions of consumers now own sophisticated smartphones which are full of sensors and in most cases always connected to the internet. These devices are generally much less secure than computers as `screen real estate‘ comes at a premium and developers are incentivised to drop security indicators. They also give rise to concerns regarding data privacy since the scope and amount of information they provide about their users is continually growing.
3. On an operational side, mobile devices could dramatically change payment patterns. In many regions of Africa it is already commonplace to carry out cash transactions via mobile phone (known as `mobile wallets‘; the extremely successful M-PESA project in Kenya is a case in point). Even though many consumers in the western world still seem to be wary of paying for real-world transactions using their mobile phone, it will only be a matter of time until the trend also takes off elsewhere.
4. Liability issues related to security breaches and information tracking are likely to multiply in the near future. On the positive side, mobile wallets could open up new distribution, payment and/or claims settlement channels for insurance companies.
(Source: SwissRe)
