"It is impossible to imagine today's world without nanotechnology"

How can an insurer assess the risks associated with a technology we haven’t had much experience with?

In principle, risks in the insurance sector are assessed based on how often loss events occur and on what sort of financial impact they have. But there is no historical loss data for new technologies. This means that we have to apply assumptions regarding certain loss scenarios.

Possible loss scenarios in the nanotechnology sector could be: workers develop chronic illnesses due to long-term contact with certain nanoparticles, or products containing nanoparticles have to be recalled because a risk is found to be associated with the use of the products later on. We don’t have any reason to assume that this will happen, but these are the kind of scenarios that we have seen with other new technologies in the past.

So what conclusion have you reached?

The "technical" risk is decisive in this respect: In the scenarios I mentioned, the risk consists of the effects of the nanoparticles and the extent to which the worker or users comes into contact with the particles. In addition to these "hard" factors that can be measured, however, soft factors, such as the risk associated with how new technologies will be perceived, is also important. The use of nanoparticles in fighting cancer enjoys a very high level of acceptance, whereas the risk-benefit ratio associated with the use of nanosilver in textiles to combat odors is seen to be higher.

The overall statutory framework that is to apply specifically to nanoparticles and their applications in the future is also decisive when it comes to assessing the overall risk. These components are used to develop potential loss scenarios and to assess risks.

What risks or developments do you believe nanotechnology will bring in the future?

It is impossible to imagine today's world without nanotechnology. It has given us high-performance electronic components in flat screens, computers and smartphones, it is being used to help fight cancer, for new construction materials, to drastically cut building heating requirements or to help us better understand the forces behind earthquakes; and it makes car paint dirt-repellent and scratch-resistant. Imagine there is a scratch in your car paint that disappears by itself overnight, or you want to change the color of your car at the touch of a button - nanotechnology will make things like that possible in the future as well.

Scientists expect to see revolutionary steps being taken in the field of energy generation, in particular. This could result in the breakthrough of electromobility with the help of nano-based batteries or could see thin plastic films being transformed into solar cells so that solar power can be generated virtually anywhere and in a more efficient manner.

This sounds very promising! And it's all moving so fast...

The risk assessment process, however, is lagging behind this fast development, and that is the real risk. Although we know that certain nanotubes have a similar structure to asbestos fibers and that some nanoparticles pose a risk to aquatic organisms or can penetrate deep into lung tissue, more research still has to be performed on the specific risks to the environment and to health.

Based on what we know now, the vast majority of nanotechnology products will not pose any risk to the environment or consumers. The aim must be, however, to identify in particular those free particles that are dangerous to human health and the environment during the manufacturing process and in end applications, investigate their impact on people and on nature as soon as possible and then develop and implement the best possible protective measures.

How is the insurance sector seeking dialog with industry in order to prevent these risks?

As part of a risk analysis, our engineers look, for example, at our customers' occupational safety measures and provide advice on the product risk for consumers. We also keep an eye on the latest risk research findings so that we can talk to our customers about the implementation of corresponding risk management strategies early on.

We are also involved in talks with consumer protection organizations, manufacturers, non-governmental organizations and government authorities. One of the main aims of this dialog is to create more transparency about risks and benefits throughout the entire production chain. This is the only way in which nanotechnology applications can be developed further in a sustainable and responsible manner.

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