Guy Carpenter report examines impact and risks of nanotechnology

Guy Carpenter & Company, the risk and reinsurance specialist of Marsh & McLennan Companies, released a new study that provides an overview of the emerging science of nanotechnology, its potential benefits for the global economy, associated risks and implications for the insurance industry.

“Nanotechnology refers to the manipulation of molecules and atoms on a small scale to produce products that exhibit new and/or different properties,” according to the report. Many in the scientific community see nanotechnology as the most significant scientific breakthrough of the 21st century.

The report also addresses nanotechnology’s potential long term benefits to the global economy; health, safety and environmental risks associated with nanotechnology; and the regulatory environment and the likely evolution of nanotechnology insurance coverage.

The National Science Foundation forecasts that $1 trillion in nanotechnology-enabled products will be on the market by 2015.

“As with practically all scientific breakthroughs, nanotechnology carries both risks and potential rewards,” observed Andrew Marcell, managing director and global head of Guy Carpenter’s Casualty Specialty Practice. “With nanotechnology risks currently spread over a wide variety of coverages — and the regulatory environment still in its infancy — there is now a great opportunity for insurers to work with governments to shape a regulatory framework that will foster nanotechnology’s positive use while sensibly addressing its risks.”

A copy of the full report is available for download at:

www.guycarp.com.