Nanotechnology – unclear exposure for (re)insurers
Nanotechnology may pose risks in areas like human health or the environment and, due to the complexity of the risks and the speed of scientific developments, may cause difficulties for the insurance industry.
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The spread and use of nanoparticles in the manufacturing process may present a health hazard and lead to corresponding (re)insurance claims.
A technology with many facets
Nanotechnology is a multidisciplinary science and technique with substantial contributions from cluster, surface, and semiconductor physics, surface chemistry, materials science, engineering sciences, pharmaceutics, medical science, the food industry and many others. Nanotechnology deals with all aspects of the knowledge of scientific and industrial techniques that are developed or used to design, manufacture, analyse or apply materials and devices of nanometre dimensions.
Developments driven by massive investments
Governments are boosting the expansion of nanotechnology by directing large amounts of money to research and development. The transfer of money is reflected in a disproportionately high increase in nanotechnology patents worldwide. Industries anticipate considerable market potential for nanomaterial-based products. The potential benefits of nanotechnology are immense. However, concerns about the possible adverse human health effects of this technology must also be addressed. Scientists and authorities around the world are working in structured and multi-year research programmes to further explore the open questions about the safety of nanomaterials.
Particle size and structure matters
Small particles can be divided into fractions according to technically and biologically important properties. Below 10µm air-dispersed particles ("dusts") belong to a fraction PM10 and are called the thoracic fraction, being able to enter deeper (thoracic) parts of the airways. Fraction particles below 2.5µm (PM 2.5) are fine particles, of which the fraction below 0.1µm (PM 0.1) is called ultra-fine and referred to as nano-particles. It is well known from the asbestos disaster that particles of a certain size and geometry (below 10µm) are capable of entering deeper parts of the airways. The interaction of insoluble particles with the body can lead to chronic illness and cancer.
Carbon nanotubes are carbon atoms folded into a cylinder form. They are produced as single tubes or as a series of concentric cylinders (known as multi-walled nanotubes). Due to their higher strength and light weight, carbon nanotubes are already used in a variety of products, where they replace conventional carbon fibres (made from graphite) in compound materials.
The long, thin shape of carbon nanotubes may pose a great health risk. Due to their length to width relation and size, they strongly resemble asbestos fibres. Like asbestos fibres, carbon nanotubes are chemically stable (insoluble) in the body. Studies have revealed the asbestos-like qualities of carbon nanotubes and their potential to cause mesothelioma (a lung cancer caused by asbestos exposure).
Possible latency damage poses a risk of loss
Continuous dissemination of artificial nanoparticles throughout the environment constitutes a pertinent risk for the (re)insurance industry. A variety of claims is conceivable. The most relevant area is the chemical industry for the production and/or processing of nanomaterials, potentially putting workers at risk. Other producing industries using nanomaterials in their production lines may face consumer class action claims due to alleged damages from nanomaterials released from surfaces (nanoparticle-containing lacquers, cleaning processes) or directly brought into the body (pharmaceuticals, medical devices). Transport of nanomaterials may accidentally lead to pollution and subsequent claims. Agriculture and food industry may be affected by nanoparticles from fertilisers, animal medicine or pollution that may lead to accumulation and increase the hazardous potential to crop, livestock or humans. Human health may be impaired by an accumulation of nanoparticles through air and food chain. Depending on the properties of the particles and the prevalence of use, several years to decades may pass before the first signs and symptoms of overloading with insoluble particles become apparent. The current evidence is inconclusive. Various risk assessment models and frameworks are currently being developed to make sense of and evaluate the available data on the health effects of nanomaterials.
Conclusion
Nanotechnology is a fascinating field of science and industry that opens up a wide range of technological possibilities. Developments in this field are taking place at a rapid pace, and it is difficult to maintain a comprehensive overview. Research is also being conducted into the potential risks to health and the environment. Consistent and reliable results are not yet available. The (re)insurance industry is therefore exposed to the risk of latency losses, which may only manifest themselves after a very long time.