National Underwriter - April 18 2011

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, in NU's April 4 issue, examines “Will Insurers Dodge Climate Nuisance Liability Bullet.”

BY WILLIAM F. STEWART

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

� 2011 LIKELY WON'T see an onslaught of nano litigation, but exposures remain, thanks to the growing global market, increased scientific scrutiny and a plaintiffs' bar waiting to pounce.

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 tril-
lion dollars within the next five years,
with increased scientific scrutiny associ-
ated with nano materials, and with a
plaintiffs’ bar watching with rapt atten-
tion, 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 man-
age nano-related risks. NU

� William F. Stewart is an attorney and a partner in the national insurance coverage group of Nelson Levine de Luca & Horst in Blue Bell, Pa. He may be reached at wstewart@nldhlaw.com.

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something wrong with my eyes: ‘Early supporters of the bill theorized…punitive damages would deter insurers from questioning or investigating claims that might have been fraudulent or included exorbitant charges.’ Looks like they got what they were after.”

� A news report on a “Controversial Bill in South Carolina Defining Occurrences in CGL Policies Advances” drew this response from “Delmer”: “All you have to do is look at Colorado to see what this bill would do. There are insurance companies leaving the construction business as fast as they possibly can.”

� An article (with video) headlined “N.C. Commissioner: Rate Dereg. Bills Would Make Auto Rates ‘Skyrocket’” sparked this feisty retort from Laissez-Faire: “Call it what you like, a socialist is a socialist. Free market competition always creates the correct pricing for a product. This fellow wants to be the Czar.”

� A column offering “An Education on Business Interruption” moved “Jim Mahurin” to comment: ;“Loss data from many sources paint a sad picture of firms that experience a significant (relative to assets and net worth) loss. Reports from the SBA, FEMA, the Hoosier Banking Study, insurance-industry educational materials and other sources bear the same news:;approximately 45% of these firms do not reopen. Within five years 80% are closed.”

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� Our story on ;“Wash. Law Linked to Surge in Homeowners’ Claims” generated this response from “M Wiltfang”: “I had to read this several times to make sure there wasn’t

� An article on “NFIP-Extension Bill Opens Door For Greater Private-Market Role” caused “ktb” to write: “Clearly the problem with flood insurance in America is that the U.S. government runs it. If we can just kick those feds out, maybe we’ll finally have a functioning flood insurance market.”

This index is provided as an additional service to our readers. The Publisher does not assume any liability for errors or omissions.

American Safety ..................................... 9 www.amsafety.com Applied Underwriters ........................ BC www.auw.com www.auw.com/ca Burns & Wilcox .................................... 11 burnsandwilcox.com CPCU .............................................. 20-21 www.cpcusociety.org www.CPCUexperience.org FC&S Online .................................... IBC www.FCandS.com GMAC Insurance.............................. IFC www.gmacinsurance.com/rv-insurance ISO................................................... 22-23 www.iso.com www.iso.com/green Lexington Insurance ....................... 16-17 www.lexplorations.com www.lexingtoninsurance.com/corp Liberty Mutual....................................... 4 libertymutualgroup.com/gl Markel .................................................. 27 www.markelinsurance.com Sports & Fitness................................... 29 www.sportsfitness.com Wolters Kluwer ............................... 24-25 www.InsuranceComplianceCorner.com