In an interview, Michael Bruch, a risk expert at the Allianz Center for Technology, speaks about the risks and opportunities presented by these new technologies.
No small matter
How far advanced is nanotechnology research?
Michael Bruch: Nanotechnology is an interdisciplinary technology and that means it has a very broad research base. Forecasts for the global market in nanotechnology range from 310 billion to four trillion US dollars by the year 2015.
The research requires a lot of funding in order to create specific nanoparticles for targeted applications on an industrial scale and the resources required are much greater than originally envisaged. These are the reasons why the projected revolutionary quantum leaps in the technology have not yet been achieved.
In what industries is nanotechnology already being used?
For example, carbon nanotubes are being used in the lithium-ion batteries used to power modern laptops. Nanoparticles are helping to kill tumor cells in medicine. In the automotive sector, it’s providing non-scratch paint. Protection against UV radiation in the cosmetics industry and self-cleaning textiles have also become a reality with nanotechnology.
Hundreds of millions of euros are being pumped into nanoelectronics in Germany each year. Are politicians putting their emphasis in the right place?
Government sponsorship for research and development is increasing, and global funding from public bodies currently amounts to some four billion US dollars annually. The United States, Japan, and the European Union are leading players, but markets such as Russia and Southeast Asia are gathering pace. Research funding for more efficient energy technologies is a very good investment. A nanoenergy center is planned in Germany for 2012. This facility will combine research in nanotechnology and energy engineering.
Is regulatory legislation governing the use of nanotechnologies already being put in place at an international or national level?
National legislation is changing. Up to now, existing laws have not been amended or supplemented with regulations specifically geared to nanotechnology. The new EU Cosmetics Directive specifies that nanoparticles in cosmetics will have to undergo safety tests starting in 2012. We’re expecting similar trends in the food sector.
What steps is Allianz taking to keep up with the technology and remain in a position to assess the risks appropriately?
We have joined forces with our colleagues from the liability department to set up an internet-based early warning system. This system enables us to collect, analyze and assess the literature on nanotechnology being published and subjected to peer review across the world. The information we collect will help us to keep our colleagues in the AGCS risk consulting and underwriting departments regularly informed on the subject.
We like to give our customers support and advice if they have any questions on the safe handling or refinement of nanomaterials. With respect to risk assessment, nano-based raw materials are often only a small part of the overall product portfolio. A risk evaluation therefore commences with an assessment of the company’s management of risk and safety. What is the quality of risk management in the company, and what concrete steps are taken to implement risk management in workplaces?
At the moment, there are no reasons to exclude specific areas of nanotechnology from insurance policies. This measure should only ever be adopted by an insurer as a last resort in order to protect the public, insured clients and the insurer from unacceptable risks.
Michael Bruch: "quantum leaps have not been achieved yet"
You recently spoke at an event organized by "NanoCare", a joint project of universities, research institutes and the private sector. What exactly is the aim of this project?
NanoCare is a project funded by the Federal Ministry for Research and Technology. A consortium involving and scientific research institutions is carrying out intensive research into potential health effects caused by nanoparticles.
What is your position on labeling obligations for products containing nanomaterials?
It increases transparency. Purchasers can make a positive decision for or against a specific product. Informed consumers can already see that zinc oxide and titanium oxide in their sunscreen relates to nanoparticles. However, in the future the designation "nano" will have to be placed in parentheses after all these materials. A designation is only effective if positive attributes like say an "environmentally friendly" or "baby-safe" seal are identified or there is a warning notice like the symbols used for hazardous materials. As insurers, we welcome a debate about risks in conjunction with labeling.
What does the future of nanotechnology look like?
No nanotechnology is without risks, and we will never be able to assess absolutely all the risks involved. It all depends on whether we arrive at a point where we understand the risks over the entire product life cycle of a nanoproduct, from its production to its applications and ultimate disposal, in order to assess them better and create risk transfer solutions.
Results from research projects such as NanoCare are hugely important. In ten to fifteen years' time, the word "nanotechnology" will no longer be on everyone’s lips. We will encounter the concept in some form in virtually every product. When nanoparticles are integrated within a solid matrix, they are generally unproblematic. It’s necessary to assess residual risks, have an open discussion about the risk-benefit profile and give a realistic assessment. This creates confidence in the technology – and that’s the ultimate basis of acceptance
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