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Unfamiliar Exposure
November 2006Emerging nanotechnol-ogies have the potential to influence and change our lives in ways we could not have imagined as recently as a decade ago. A generic term for applications at the molecular level, nanotechnology will eventually influence every aspect of our lives; from the way we communicate to the methods used to diagnose and treat illness. Nanotechnology will improve efficiencies in energy, computer storage capacity and data processing, security, clothing, food, and shelter.
The potential of nanotechnology is reflected by the amount of revenue currently projected for these technologies, between $1 trillion and $2 trillion within the next 10 to 15 years. And just in time, because according to World Resources 2000 and United Nations press releases, within the next 50 years-less than one lifetime-the world population is expected to grow by 50%, world economic activity is expected to grow 500% and world energy and materials use is expected to grow by 300%.
The global ramifications of these projected numbers are staggering, and the development of new ways to respond to these burgeoning demands is critical.
As optimistic as researchers may be, growing evidence suggests that nanoparticles - the building blocks of nanotechnology and the tiniest of materials ever engineered and produced - may pose environmental, health and safety risks, which in turn engenders the concern of the insurance and reinsurance industry.
ROLE OF INSURANCE TO EMERGING TECHNOLOGIES
By helping businesses manage the risks associated with product development and deployment, the insurance industry has always been an "enabler" of new technology, an aspect often overlooked by the industry and its detractors. Consequently, if the insurance industry is to support these new nanotechnologies, while not incurring major long-term losses, the industry must be able to assess potential property damage, bodily injury to workers and the public, and the environmental liabilities associated with businesses handling and using nanomaterials.
To be able to make such assessments the insurance industry needs to become educated (see "What is Nanotechnology") and:
* Understand nanomaterials and nanotechnologies, and have access to accurate data and information that permit a quantifiable evaluation of the probability and severity of losses;
* Operate in a regulated environment so there are controls over the use and disposal of harmful nanomaterials.
UNDERSTANDING THE RISK
Although there are currently only a limited number of products in the marketplace that contain engineered nanomaterials, the pace of nanotechnology development ensures that this will not be the case for long. Consequently, industry, government and insurers are concerned about the associated environmental, health, and safety impact and are working together to develop a better understanding of nanomaterial's properties and risks.
Some of the special features of nanomaterials that allow for positive, useful properties also give rise to a number of unknown exposures:
* Size of particles. The extremely small size of nanoparticles makes them incapable of being measured by most current techniques.
* Increased reactivity. Nanoparticles are more reactive than are particles larger in size. As such, materials that have been benign in the past may become reactive and potentially toxic in nanoparticle form.
* Routes of exposure. Because of their size, nanoparticles can be inhaled, ingested and may even enter the body through the skin.
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