Re/insurers grapple with 'hard-to-predict' PFAS problem

By Ben Margulies | Insurance Day | December 6, 2024

Read the full article by Ben Margulies (Insurance Day)

"Casualty re/insurers face certain persistent worries. Some stem from dysfunctions in markets or regulatory systems, like the “social inflation” fuelled by ever-rising legal costs in the US.

Other problems come from the insured perils themselves, which may produce unexpected liabilities. Widely used substances, such as asbestos and tobacco, can turn out to be harmful long after they became part of everyday life, creating potential liability claims for casualty insurers across several lines, possibly decades into the future. At present, insurers are especially concerned about “per- and polyfluoroalkyl substances”, or PFAS.

PFAS is a class of chemicals constituted by bonds between carbon and fluorine atoms. Carbon-fluorine bonds are among the most durable chemical bonds in existence, so PFAS decompose very slowly, hence the nickname “forever chemicals”. There is considerable – if not always conclusive – evidence these chemicals, used throughout modern manufacturing, could cause a variety of serious health problems."

Topics:

• ChemicalsPFAS