Insurance industry should pay attention because of the "huge potential" of the science
Lloyd’s today published a report on nanotechnology; the branch of science and technology that is dependent upon the manipulation of objects at a molecular or atomic level.
Nanotechnology is already in use around the world. For example, the clothing industry is using embedded nanoparticles to create stain-repellent khakis and a manufacturer is producing tennis balls with a nanocomposite that keeps them bouncing twice as long.
However, while nanotechnology has the potential to be as commonly used as plastic, its risk assessment has barely begun. The new Lloyd’s report aims to inform the insurance market and wider industry about the risks and opportunities that exist in this developing area.
According to the report, the insurance industry should study nanotechnology for a number of reasons:
· huge potential – it is set to be a significant market with 15% of all products containing nanotechnology by 2014;
· unknown side effects – the jury is still out on whether nanoparticles could prove toxic to humans or be harmful to the environment;
· safer world – nanotechnology could reduce risks with new materials that are stronger and more adaptive, for example cars could be made to perform better when crashed; and
· lack of regulation – there is no specific regulation aimed at nanotechnology and the area is currently covered under existing mechanisms.
To coincide with the launch of the report, the Lighthouse Risk Network is holding a conference at Lloyd’s, which began today, to provide underwriters with an opportunity to increase their knowledge of nanotechnologies.
The report can be accessed by clicking on the weblink on the right.
