role of insurance for innovative technologies: nanotechnology
Post on 11-May-2015
1.394 Views
Preview:
DESCRIPTION
TRANSCRIPT
127 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Allianz Global Corporate & Specialty
Role of Insurance for Innovative Technologies:
Nanotechnology
AGCS Risk Consulting /Head of R&D, Michael Bruch /Milano 27 November 2012
227 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE 2
Table of contents 1 Allianz and AGC&S
2 Emerging risk definition
3 What is nanotechnology and where is it used?
4 Opportunities and risks from an insurers perspective
5 Risk assessment of nanorelated applications
6 What is needed to promote nanotechnologies in as sustainable manner?
7 Outlook
327 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
AllianzAn Introduction
Allianz Group is one of the world’s leading insurers and financial services providers
Founded in 1890 in Berlin, Allianz companies now extend to over 70 countries with approximately 142,000 employees and 78 million customers
Insurer financial strength rating of AA (‘Very Strong’) from S&P and A+ (‘Superior’) from A.M. Best
International network of strong brands, with first-class products in the fields of:
1. property and casualty insurance
2. life and health insurance
3. asset management
For more information visit www.allianz.com.
427 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Allianz SE Results 2011
In summary
Solid performance despite difficult environment
Stable operating profit of €7.9bn, on target
Revenues of €103.6bn, close to 2010’s record (€106.5bn)
Net income of €2.8bn (2010: €5.2bn) impacted by impairments from Greek sovereign bonds and financial sector investments
P&C business: revenues increased to record high of €44.8bn - profitability also maintained
L&H business remains on high level with €2.4bn operating profit
Asset Management delivers excellent result
Strong capital position further improved: shareholders’ equity rose to €44.9bn, solvency ratio increased to 179% as at Dec 31st 2011
Allianz SE maintains its strong financial ratings
2
3
4
5
Revenues again surpass €100bn mark
€1.8bn in NatCat claims paid or reserved for our customers
Operating profit target achieved despite challenges
Diversified business key to strength
Excellent capital position with strong solvency ratio
1
“These results show the true strength of the Allianz business model.“
Michael Diekmann, CEO of Allianz SE
527 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Allianz Global Corporate & SpecialtyAn Overview
We are one of the few specialist corporate insurers with a genuine global market presence who can provide “one carrier” insurance solutions across the whole spectrum of corporate and specialty risks.
Diversified product portfolio
Wide range of complementary services, including specialist non-traditional risk transfer solutions provided by our subsidiary ART
Financial strength: €4.9 billion GWP (2011)
Global reach: integrated in the Allianz network of more than 150 countries worldwide
Extensive international experience: manages some 1,600 International Insurance Programs
More than 3,400 dedicated employees
Product lines
Alternative Risk Transfer Aviation
Energy Engineering / Construction
Financial Lines Global Programs
Liability / Casualty Marine
Property Risk Consulting
627 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE 6
Emerging risk definitions according toCRO ERI members
Full nature and effects are not yet known
May develop or already exist
Difficult to quantify and may have a large loss potential on society and industry
Represent potential business opportunities for the insurance industry as well
Often they are already present in an insurers existing portfolio.
727 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Table of contents 1 Allianz and AGC&S
2 Emerging risk definition
3 What is nanotechnology and where is it used?
4 Opportunities and risks from an insurers perspective
5 Risk assessment of nanorelated applications
6 What is needed to promote nanotechnologies in as sustainable manner?
7 Outlook
827 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Electromagnetic fields
Genetic modified organism
Power blackouts
Cyber risks
Endocrine disrupters
Nanotechnology
Obesity
Offshore Wind
Longevity
…
Examples of Emerging Risks….and their drivers
Economy
Legal framework
Innovation
Society
927 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
1027 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Risk Assessment - Opportunities and Risks of Nanotechnologies
Joint Report with the International Future Program of OECD in 2005
Contents:
What is nanotechnology?
Markets for nanotechnologies
Players
Government programs
Risks
Opportunities and Risks for the AZ Group
Press conferences in London, München,Wien, Madrid
1127 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
"Dosis facit venenum." (Paracelsus, 1538)
1227 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Table of contents 1 Allianz and AGC&S
2 Emerging risk definition
3 What is nanotechnology and where is it used?
4 Opportunities and risks from an insurers perspective
5 Risk assessment of nanorelated applications
6 What is needed to promote nanotechnologies in as sustainable manner?
7 Outlook
1327 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Sizes of various objects for comparison
Source: VDI TZ / Federal Ministry of Education and Research
1427 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
New properties of engineered nanoparticles
Quantum-mechanic
behaviour
Increased surface area Molecular recognition
„New“ technical physics through changes in
Colour, transparency
Hardness
Magnetism
Electrical conductivity
„New“ chemical processes through changes in
Melting and boiling point
Chemical reactivity
Catalytic yield
„New“ bio-applications through combination with
Self-organisation
Repairability
Adaptability
Recognition
1527 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
What is Nanotechnology?
Nanotechnology is the understanding and control of matter at dimensions of roughly 1 to 100 nanometers
Synthesis and Manipulation of matter inNano Scale Dimensions Nanoparticles (e.g. Carbon Black)
Carbon nanotubes / fullerenes
Atomic Force Microscope
...
Materials with tailor-made new physical, chemical andbiological properties.
Fullerene
Carbon NanotubeSources: Universities of Reading, Nagoya
1627 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Natural sources of nanoparticles
1727 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Consumer Nano-products
Source:http://www.nanotechproject.org/
1827 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Automotive
(tires, lacquers)
Number of products according to main categories ( ∑ = 1,393)
8%
53%
9%
15%
4%2%
6% 3%
Health & Fitness(sporting goods, clothing,
cosmetics, sunscreens)
Appliances
(washing machine, air cleaners)
Food & Beverage
(e.g. dietary supplement)
Cross cutting applications (coatings)Goods for ChildrenElectronics and Computers
Home & Garden
(cleaning supplies)
Source: www.nanotechproject.org
Nanoproduct figures 2011
1927 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Nanoproducts in the future
2027 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Pyrogenic oxides• Silica (1940´s)• Surface-treated silica (1960´s)• Alumina (1950´s)• Titania (1950´s)• Mixed metal oxides (1950‘s)• Zirconia (1990´s)• Zinc dioxide (2000´s)
Nanostructured materials are not new
Ongoing industrial production of nanoparticles
Source: Dechema / VCI
2127 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Zinc oxide for UV-A protectionHow does it work? Nanoscale ZnO absorbs and scatters UV-
light
Skin High sun-protection factor
Good feeling
Protects against cancer and skin aging
Wood and polymers Long term UV-protection
Transparency
No leaching
Stable at elevated temperature
Increased outdoor lifetime of woodSourceDechema / VCI
2227 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Lotus leaf Microstructures of a lotus leaf with water-repelling nanostructured
wax crystals
Technical realisation of the lotus effect
Beispiel: Facade paint
Surface with lotus effect
Self-cleaning surfaces: Lotus effect
Source: FCI
water
dirt particles
2327 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Application principle: Nano-particles are absorbed specifically by the
cancer cells
Special iron oxide nano-particles are super-heated in cancer cells by an external magnetic field thereby killing the cancer cells
Status quo since 2005 clinical trials for glioblastoms
(malignant brain tumors)
in 2011 this treatment has received an EU approval for therapy use
Cancer therapy with nanobiotechnologically modified iron oxide nanoparticles
Source: MagForce
2427 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Strongly investigated since the beginning of the 90’s
Extraordinarily active field of research
Carbon Nanotubes
Properties: 6 times lighter than steel—but
100 times stronger
Compressive strength: 2 x Kevlar
Tensile strength: 10 x steel
high electrical conductivity
Applications:
Composite materials (metal, ceramic, polymer matrix)
Field emission displays
CNT-electronics
Bio sensors
2527 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Scratch-resistant paint
Dirt-repellent surfaces
Elektrochrome rear-view mirrors (darken upon receiving an
electrical signal)
Carbon Black in tires for less abrasion and better adhesion
Scratch resistantcoating (plastic parts)
Anti-reflection coating (dashboard instruments)
Color dependent on viewing angle
Reduced wear and tear in the engine
Nanotechnology in cars today…
Light-emitting diodes (LEDs) in the headlights
Heat-reflecting and self-cleaning glazing
2627 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
High-brightness nano-enhanced polymer displays
Sensors monitoring e.g. road conditions, vehicle’s steering
ability
Fast-charge batteries for hybrid cars
Polymer composite panels for greater stiffness and toughness
Lighter, tougher tires; nanoclays to improve tire gas barriers
Distributed solar cells using conformable photovoltaics
…and tomorrow
Carbon nanotube alloys for lighter, tougher frames
Catalysts and nano membranes for better fuel cells
Ceramics with improved catalysts for reduced emissions
Scratches in the paintwork “heal`” by themselves with selforganizing
nanoparticles
2727 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Direct benefits for insurers from nanoproducts
Damage-resistant building materials – but
loss patterns with new materials are
unknown
Stronger or more adaptive materials to
absorb crashes (e.g. automotive sector)
Wireless, nano-enabled sensors to report
defects in structural components
Pollution cleanup and prevention
Nanoenabled medical therapies
2827 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Table of contents 1 Allianz and AGC&S
2 Emerging risk definition
3 What is nanotechnology and where is it used?
4 Opportunities and risks from an insurers perspective
5 Risk assessment of nanorelated applications
6 What is needed to promote nanotechnologies in as sustainable manner?
7 Outlook
2927 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
The business opportunities from an insurer’s perspective
Growth sector for commercial and industrial insurance cover
Adequate insurance cover as an prerequisite for entrepreneurial activity
especially for small- and medium-sized enterprises
3027 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Free nanoparticles
- can travel deep into the lung and reach the alveoli
- can induce inflammation and tissue damage
- can pass the blood brain barrier
- can reach the blood stream and are transported tovarious organs
- can enter the body over various pathways
A few manufactured nanomaterials have shown toxic properties
There is a correlation of the concentration of fine and ultrafine particles inambient air with mortality rates found in epidemiological studies
We cannot exclude unintended long term effects on health and environment
However...
David B Warheit, DuPont Haskell Laboratory
3127 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Contamination of the environment, buildings etc. from sudden and accidental releases
Increasing number of work places affected
Increasing deliberate applications in products(Medicine, Pharma, Cosmetics etc.)
Unintended release of nanoparticles from productsduring their life cycle(use, destruction, incineration, disposal ...)
…and the exposure of persons and the release of nanoparticles into the environment will increase
Water droplet / „Lotus“-effect
3227 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Why is Nanotechnology an Emerging Riskfor insurers (1)
Existing insurance covers include risks of nanotechnology.
The knowledge is incomplete in terms of emission sources and quantities,
toxicology, ecotoxicology and environmental behaviour.
Reliable standardised methods of measurement and guidelines for testing
are mostly missing.
Involvement of high number of companies from different industries incl.
subsequent processing companies.
Multiple lines of business and multiple classes of insured could see claims
Potential loss scenario resemble major product liability cases from the past.
3327 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
…why is Nanotechnology an Emerging Riskfor insurers (2)
Regulatory uncertainties
Unclear definition and terminology
Ambiguity in risk perception - significant NGO activity and low consumer knowledge
No loss history available
Imbalance and lack of information
Identification, monitoring and controlling of those few particles and applications which may pose a health or environmental risk is difficult.
=> Even under an optimistic scenario it will take several years until the “knowledge gaps” will be closed
=> Even under an optimistic scenario it will take several years until the “knowledge gaps” will be closed
3427 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Emerging Risk Update - Nanotechnology
High Nano related occupational health risks for SMEs and secondary producers…
Occupational health risks1)2)
More than 1,000 nanotechnology firms in US have fewer than 25 people.
Survey on occupational safety and health, University of California:
- Only 46% of Nano firms have nano-specific environmental health and safety programs (EHS).
- Nearly 30% of the companies that did require personal protection only required dust masks.
- Confusion about the right best practice measures in terms of nano workplace safety.
The larger the firm, the more likely it will have nano-specific EHS in place.
1)http://www.newhavenindependent.org/index.php/archives/entry/survey_shows_confusion_on_protecting_nano_workers
2)http://www.genre.com/sharedfile/pdf/InsuranceIssues201111-en.pdf
3527 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Emerging risk update - Nanotechnology
Increasing risk perception of Nanotech risks on the part of regulatory bodies, lawyers and research institutes.
EU- operational health and safety experts (OSHA) see nanoparticles as major concern on workers health.http://osha.europa.eu/en/publications/reports/TE3008390ENC_chemical_risks/view
No pending claims known but legal advisers recommend to place nanoproducts into commerce before insurers are able to realise and quantify nanorisks.
Due to toxicity concerns industry will face tougher product testing rules for nanoparticles in cosmetics as of 2013 (e.g. sunscreens).
EU reforms will force food manufacturers (EU’s novel food regulation) to state and to label if products contain nanoparticles.
3627 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Potential for exposure to nanomaterials
Degree of regulation
Ability to control exposure
Time for impact
Who/what at risk for exposure
Key form of exposure
Opportunity for exposure to large volumes
Number of individuals at risk
Incentive for produce to invest in countermeasures
Factor for consideration End of lifeUseManufacture
High
Short or long
Workers
Free particles
High
High
Tens to thousands
Frequent
Medium
Long
Consumers
Fixed particles
Medium
High
Thousands to millions
Rare
Low
Long
Environment
Fixed particles
Low
Medium
Millions
Possible over time
Unresolved questions Fewest More Most
Potential for major exposure
3727 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Nanotechnology risk landscape
Many voluntary data-gathering systems but no
international nomenclature
practical guidelines
Regulatory Risk
3827 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Nanotechnology risk landscape
Regulatory Risk
Production Risk
Most of the products seems to be safe
Number of risk studies is increasing but
no clear answers on safety profile of nanoparticles and nanoproducts
The more risk studies we see the higher the (un)certainty gets(?) – disputes among experts can be the basis for future claims
3927 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Nanotechnology risk landscape
Perceptual Risk
Production Risk
Regulatory Risk
Highest impact on the overall risk, due to the lack of
qualified hazard and exposure data
strong legal framework
harmonised public risk communication (risk-benefit approach)
4027 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Nanotechnology headlines
Nanotechnology risks: The new asbestos?The safety risks of nanotechnology use by the food industry could make it “the we asbestos”….
Nanofibres could be as harmful as asbestos
Experts have said that inhaling nanofibres could be equally as damaging as breathing asbestos.
Nanomaterials, sunscreens and cosmetics: Small ingredients, big risks
Friends of the Earth's report “Nanomaterials, sunscreens and cosmetics: Small ingredients, big risks" details the extensive use of nanomaterials in 116 products, from sunscreens and anti-aging creams to shampoos and toothpastes, despite preliminary scientific evidence that many types of nanoparticles can be toxic.
Nanotech-based products offer great potential but unknown risks
Some experts push cautious approach as market keeps expanding
The dangers of nanotechnology, a warning to consumers
Although there is potential benefit to consumers, nanomaterials can also pose new threats to human health and the environment - warns consumer group.
What is the influence of the perceptual risk on nano-technology?
4127 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Table of contents 1 Allianz and AGC&S
2 Emerging risk definition
3 What is nanotechnology and where is it used?
4 Opportunities and risks from an insurers perspective
5 Risk assessment of nanorelated applications
6 What is needed to promote nanotechnologies in as sustainable manner?
7 Outlook
4227 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Risk level for selected Nanomaterials
(Nano)-silver Carbon Nanotubes Carbon Black
Low Risk Medium Risk High Risk
4327 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Case study: (Nano)-Silver applications
Perceptual Risk
Production Risk
Regulatory Risk
Low Risk Medium Risk High Risk
Products today:• Textiles• Food-packaging• Self-sterilizing medical or
consumer devices • Washing machines
EPA (US) has regulated silver-ion-generating applications as pesticides
but only marketing of these products is affected
Regulation based on environmental risks to be expected
Long-term experience with silver-ion devices
Seems to be a low risk for workers and consumers
Many open questions concerning disposal of products (environmental risk)
More and more products are entering the market
Lack of risk data and categorization as pesticides raise concerns
NGO calls for Samsung “Nano Silver” washing machine recall
4427 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Case study: Carbon Nanotubes
Perceptual Risk
Production Risk
Regulatory Risk
Low Risk Medium Risk High Risk
Products today:• Composites• Electronic devices
Regualtory framework for CNTs will probably change due to material specifics
Variety of production processes creates CNTs with different properties incl. unclear toxicity effects
Low exposure level (today)
Many safe applications (electronic devices) but also applications with unclear effects over product-life-cycle
Frequently compared with asbestos
Few “close-to-the-consumer” applications(e.g. food, cosmetics, pharmaceuticals)
4527 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Case study: Carbon Black
Perceptual Risk
Production Risk
Regulatory Risk
Low Risk Medium Risk High Risk
Products today:• Car tires• Toner pigments
No need for regulatory changes due to extensive data
High market relevancy and long time experience in manufacturing
No evidence for specific bodily or environmental harm at manufacturing or disposal
Used since decades without risk concerns coming up
Remaining risk:
Ultra fine dust (e.g. wheel abraison)
Cause of health complaints concerning emissions of office machines still unclear
4627 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Technical risk assessment approaches
HazardExposureToxicological perspective
SeverityFrequencyInsuranceperspective
4727 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Pollution spill from a nanoparticle production facility
Nanoparticle manufacture workers develop chronic illness
Nanoparticles leach from products to accumulate in the environment
Product recall due to research findings indicating product is a hazard
Liability claims on a company, directors and officers regarding a product that was indicated by research to be unsafe, but subsequently released to the consumer market.
Insurance scenarios
Source: Lloyds
4827 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Magic Nano - First Product liability claim with Nano?
Product
Aerosol sealing spray for making glass and ceramic surfaces water- and dirt-repellant
Loss history
100 customers reported respiratory complaints
Media: “First health-related product recall of an alleged nanotechnology consumer product”
Insured product liability event (loss amount < 1 Mio EUR, secondary claims via social insurance agencies)
Damage & loss analysis results
No nano-sized ingredients (silicon dioxide)
Potential cause of loss: Inhalation of very fine airborne droplets
Lack of evidence base
4927 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Magic Nano - Lessons learned
Reputational risk
First impressions matter
Incident was a wake-up call for the whole nano community
Negative blast for a hitherto positive image of business
Recommendations
Development of standards for terminology and labeling
More transparency on use of nanomaterials and safety issues
Appropriate research activities into human health and environmental impacts
Risk Management:
- Reputational damage exposure
- Crisis communication
5027 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Table of contents 1 Allianz and AGC&S
2 Emerging risk definition
3 What is nanotechnology and where is it used?
4 Opportunities and risks from an insurers perspective
5 Risk assessment of nanorelated applications
6 What is needed to promote nanotechnologies in as sustainable manner?
7 Outlook
5127 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Risk assessment
Risk identification
Risk assessment
Risk identification
Risk handling
Risk control
Ris
k a
na
lysi
s
Risk avoidance
Risk reduction, loss prevention
(e.g. workplace safety measures)
Risk provisions(e.g. setting up reserves)
Risk transfer (e.g. insurance)
Insurance solutions provides the financial security to ease the bump in the balance sheet.
Risk Management process
5227 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology© Copyright Allianz SE
© Copyright Allianz SE
insurable risks
insured risks
unknown risks
elusive risks
quantifiable risks
Risk categories
5327 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Insurability of nanotechnologies
Criterion Status quo
Assessability:Probability and severity of losses quantifiable
limited evidence base latency effects / long term exposure Randomness:
Time of insured event unpredictable andoccurence independent of will of insured
MutualityRisk community, large number of risks,diversification
wide variety of applications wide variety of chemical substances, sizes, surfaces various industry segments various sizes of clients sub classes of widely used materials Economic feasibility
Premium commensurate with the risk strongly dependent on scenario
CausationCausal relationship between the action oromission of the insured and the resultingdamage / injury / financial loss
Agent in principle analytically provable Signature diseases? Knowledge gaps can lead to legal risks
5427 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Predictable issues are positively and
transparently handled
Problematic processes/products do not enter
market
Unique or novel risks are identified early and
managed properly
Existing hazards are actively managed
Assessrisks
Implementmeasures
An insurer provides financial security for remaining risks via insurance cover if:
RM Cycle
Identify risks
Monitor &Control
5527 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
ManufacturerManufacturer
ConsumerConsumer
RegulatorRegulator
• Access to loans / equity capital• Reliable results from safety/toxicology
studies • Information concerning safe handling of
nanomaterial incl. measuring methods • Support in compiling Material Safety
Data Sheets (MSDS)• Binding character of toxicological results
and impact on regulatory framework
• Access to loans / equity capital• Reliable results from safety/toxicology
studies • Information concerning safe handling of
nanomaterial incl. measuring methods • Support in compiling Material Safety
Data Sheets (MSDS)• Binding character of toxicological results
and impact on regulatory framework
• Open communication and information on both risks and benefits
• Generally understandable risk and ingredients information via media (e.g. internet, TV) incl. labeling
• Convenient for consumers and independent test results
• Open communication and information on both risks and benefits
• Generally understandable risk and ingredients information via media (e.g. internet, TV) incl. labeling
• Convenient for consumers and independent test results
What is needed to promote innovative technologies?
Nanotechnology: Requirement profile of different stakeholders
• Uniform terminology• Acknowledged measuring methods and
standards• Valid toxicological research results
• Uniform terminology• Acknowledged measuring methods and
standards• Valid toxicological research results
• Insurances are a precondition for access to capital markets
• Risk costs can be distributed onto many shoulders which allows (excessive?) risks to be taken
• Transparency via stakeholder dialogues, risk assessments and adequate risk premiums
• Best available technology for loss prevention measures
• Code of practice?
• What is an accepted risk level?
5627 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Risk Management/Risk Assessment Risk assessments across the whole product lifecycle
Reliable results from safety/toxicology studies
Information concerning safe handling of nanomaterial incl. measuring methods
Support in compiling Material Safety Data Sheets (MSDS)
Binding character of toxicological results and impact on regulatory framework
PROs:
+ Gives clear guidance how to assess the risk of nanomaterials and nano-enabled products
Limitations Supportive measures
- How much tests/evidence base are required?
- Must include the whole product lifecycle
- Variety of particles, production methodologies, applications
- Limitations concerning adequate and standardised measuring methods and instruments
Development of best practice guidelines for safe production and handling
Stakeholder dialogues?
Funding of risk research
What is needed for a sustainable development of Nanotechnology?
5727 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Risk communication and perception Open communication and information on both risks and benefits
Generally understandable risk and ingredients information via media (e.g. internet, TV) incl. labeling
Convenient for consumers and independent test results
PROs:
+ Understandable risk/benefit analyses increase the acceptance level of nanotechnology
Limitations Supportive measures
- What is a general accepted risk level and how to define it?
- Risk/benefit methodology has to bridge the gap between being accurate enough and easy-to-understand
Stakeholder dialogues?
What is needed for a sustainable development of Nanotechnology?
5827 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
What is generally required to drive innovative technologies sustainable?
Stakeholder dialogues
Risk-/benefit analyses for a
general accepted risk level
How much evidence of risks
does a society need?
Moratorium versus
corporate self-
responsibility
Risk assessment: Is there evidence that a
proactive Environmental, Social,
Governance (ESG) Management signals a
better overall Risk Management of a
company
How much regulation is
needed?
How should a future best-
practice Risk Management
look like?
…and what can be the
contribution of insurers?
5927 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Table of contents 1 Allianz and AGC&S
2 Emerging risk definition
3 What is nanotechnology and where is it used?
4 Opportunities and risks from an insurers perspective
5 Risk assessment of nanorelated applications
6 What is needed to promote nanotechnologies in as sustainable manner?
7 Outlook
6027 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
The Outlook
Sustainable exploitation of nanotechnologies will lead to economic and
technical progress that are of major importance to the global economy.
Dedicated research on risks, high-quality risk management and continuous
dialogue will lay foundation for positive public take-up of nanotech.
Positive stewardship, complemented by responsible insurance will support
the sustainable future of nanotech developments.
6127 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE 61
Thank you for your attention!
6227 November 2012, Milano, Role of Insurance for Innovative Technologies: Nanotechnology
© Copyright Allianz SE
Disclaimer
These assessments are, as always, subject to the disclaimer provided below.
Cautionary Note Regarding Forward-Looking Statements
The statements contained herein may include statements of future
expectations and other forward-looking statements that are based
on management’s current views and assumptions and involve
known
and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those
expressed or
implied in such statements. In addition to statements which are
forward-looking by reason of context, the words “may”, “will”,
“should”, “expects”, “plans”, “intends”, “anticipates”, “believes”,
“estimates”, “predicts”,
“potential”, or “continue” and similar expressions identify forward-
looking statements. Actual results, performance or events may
differ materially
from those in such statements due to, without limitation, (i) general
economic conditions, including in particular economic conditions in
the Allianz Group’s core business and core markets, (ii)
performance of financial markets, including emerging markets, and
including market volatility, liquidity and credit events (iii) the
frequency and severity of insured loss events,
including from natural catastrophes and including the development
of loss expenses, (iv) mortality and morbidity levels and trends, (v)
persistency
levels, (vi) the extent of credit defaults, (vii) interest rate levels,
(viii) currency exchange rates including the Euro/U.S. Dollar
exchange rate, (ix) changing levels of competition, (x) changes in
laws and regulations, including monetary convergence and the
European Monetary Union, (xi) changes in the policies of central
banks and/or foreign governments, (xii) the impact of acquisitions,
including related integration issues, (xiii) reorganization measures,
and (xiv) general competitive factors, in each case on a local,
regional, national and/or global basis. Many of these factors may be
more likely to occur, or more pronounced, as a result of terrorist
activities and their consequences.
No duty to update.
The company assumes no obligation to update any
information contained herein.
top related