1. Contingent Business Interruption cover is driving a lot ofinterest in the line, especially among hospitality clients.Companies with substantial international supply chains also areincreasingly considering acquiring Contingent Business Interruptioncover in case an environmental incident shuts down asupplier.

2. Mold is a source of increased concern for real estate andhealth-care clients.

3. The jury is still out on just how much risk is posed bynanotechnology—and whether it’s an Environmental risk or a Productone. If nano particles get into a landfill and are able to migrateout through “impermeable” barriers because of their size, then anincident is likely to be seen as an Environmental exposure.

4. Carbon sequestration presents special underwriting challengesbecause of the potential legacy issues. While it’s not as hot atopic today as it was three or four years ago, Marsh expects it’sgoing to come back.

5. One impact of the recent financial crisis is a greaterawareness of counterparty credit risk, with people saying: “OK,I’ve got this Environmental indemnity—but how good is it?” So Marshis structuring insurance programs in such a way that they will dropdown in the event of an indemnity failing (due to an Environmentalloss).

6. The post-Great Recession world also has created anenvironment in which banks are much more aware of the risks of theorganizations to which they are lending. Marsh is seeing a trendwhere lenders are saying, “In order to refinance, I expect you tohave an Environmental insurance solution in place.”

7. Buyers of Pollution policies for their operational riskscould typically get three, five or even 10 years of coverage. Butover the last couple of years—and especially in 2012— carriers havedesired to reduce the amount of longer-term programs they write infavor of three-, two- or even one-year deals.

8. Outside the U.S., there is certainly environmentalregulation—but not as much enforcement. So the driver for buying ismore about managing cash flow and first-party loss—and less aboutfear of being sued.

9. Among the trends in the private-equity space: Five years ago,private-equity players were more inclined to keep Environmentalrisks on their books. Now, with pricing so competitive, it’s ano-brainer for them to transfer the risk to an insuranceprogram.

10. Telecommunication companies with fiber-optic networks andsolar-panel manufacturers are two growing sources of Environmentalplacements, according to Janet Carl, a senior member of the MarshEnvironmental team.