AllianzGroup.com News: What has prompted Allianz to become involved with the issue of nanotechnology?
Lauterwasser: The high level of investment currently being channeled into nanotechnology research suggests that this sector is highly likely to become one of considerable economic importance in the next few years. However, the opportunities which this presents are countered by risks which we have not yet been able to quantify.
As an insurer, it is our job to identify these risks so that we can insure them. Not only that, we also want to offer competent risk management support to our clients who are active in this sector.
What revenues do you expect in the sector in the next few years?
Lauterwasser: At the moment, manufacturers use nanotechnology for less than one percent of all products. However, experts forecast that in just eight years this figure will have risen to 14 percent. In 2014, nanotechnology activities worldwide will generate revenues of 2.6 trillion dollars – that is more than the computer and telecommunications industries combined and ten times as much as the biotechnology industry.
In what areas will nanotechnology mainly be used?
Lauterwasser: It will have a wide range of applications, for example in the field of medicine where it could ensure that active ingredients are not released until they have traveled to the right part of the body. Stain-resistant, non-creasing fabrics could be created with nanotechnology, or electronic parts such as computer chips, micro-batteries or solar cells.
The food industry is also experimenting with nano-products, including fertilizers, food additives and packaging. For example, special packaging could not only keep food in supermarkets fresh for longer, but also change color as a warning that the product had passed its best.
We do not expect to see such products until 2010, however, as nanotechnology is expensive and requires a great deal of research. In the meantime, we anticipate it being used selectively in automotive and aerospace engineering, and then more widely in electronics and IT.
So what types of risk are involved?
Lauterwasser: It is the health and environmental risks posed by free nano-particles which are the big unknown. Although most nano-particles are firmly embedded in the product and can thus do relatively little damage, the free particles, which can for instance appear during production or over the product life cycle, could be a problem. There is a risk that they could be inhaled or ingested through the skin and then cause damage.
As an insurer, how can you help to limit the risks involved?
Lauterwasser: In addition to supporting our clients, we believe it is important to work together with all those involved, from industry, research and official bodies, to produce an instrument for evaluating risk. It should be possible, for example, to analyze the life cycle of a product from its manufacture and use to its disposal. In this dialog we would see ourselves more as risk experts than as "lobbyists".
What should policymakers do?
Lauterwasser: Until now, there have been no definite regulations, not even the EU Chemicals Directive REACH addresses the subject, and the issue of labeling remains unresolved.
We believe it is necessary for governments to work together on an international basis on this topic. That is why we have already become involved in a project with the OECD.
What is your best case scenario for nanotechnology?
Lauterwasser: Ideally this technology would drive forward economic and technological growth and help ensure that people throughout the world had better access to energy, drinking water and medical care.
Intensive research, the results of which would be published, would ensure that problem products never reached the market in the first place, and the other risks would be actively monitored and insured – international standards could play a part in this. Open dialog with the media and the public would make sure that people did not see nanotechnology as a threat or build up irrational fears.
Could you imagine that one day the risks involved in nanotechnology might become so unpredictable that you could no longer insure them?
Lauterwasser: Even in the worst case scenario, we would only expect that to happen in individual areas of technology. This is because if industrial companies, with our support, manage their risks actively, they themselves will make the right decisions on which technologies it is wise to use.
As an insurer, we will definitely remain the risk partner of an industry which acts responsibly. The issue will simply be how we can best design this partnership.
Download: Small sizes that matter: Opportunities and risks of Nanotechnologies (pdf, 2,7 MB)
