Editor's Note: This is the second article in a three-part series examining a trio of emerging threats in 2011, each with the potential to impose seismic change upon the risk-management landscape. The first article asks "Will Insurers Dodge Climate Nuisance Liability Bullet."
Nanoparticles are extremely small objects, measured in terms of nanometers—equivalent to one billionth of a meter. In recent years, the use of engineered nanomaterials in consumer products such as sunscreen, cosmetics, clothing and baby products has soared.
These materials are sometimes small enough to enter the human body through the skin and through inhalation. As a result, substantial concern has developed because these tiny materials are often made of toxic substances—and closely resemble asbestos fibers.
For years, we have heard rumblings that nano litigation and nano class actions are just around the bend. And because no nanotech suit has yet been filed, it is tempting to consider nano exposure as "the tort that cried wolf."
But with a global market for nano-based products expected to reach a trillion dollars within the next five years, with increased scientific scrutiny associated with nano materials, and with a plaintiffs' bar watching with rapt attention, reasons for real concern exist. While it is safe to say that 2011 will not see an onslaught of nano litigation, there is every reason for insurers to carefully manage nano-related risks.
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