Fraud rising, but what else?

AON are warning that fraud is on the rise and that insurance is going to face increasing claims from environmental threats, terrorism and product recalls.

They also think nano-tech is going to bite insurers.

I’d agree with fraud.

Longer term, I think the environment is going to be an issue — it already is, obviously — but I think the market will find ways to deal with that.

NOTE: Munich Re say that they expect that insurance products for “new” liability risks will emerge in the future, possibly covering risks such as failure to warn/report/inform, conspiracy, wrong reaction to emergency situations and even improper claims handling. They also comment that the question of whether claims emerge through general liability or product liability insurance may continue to evolve and may become more frequent. “Such covers are intended to extend only to emissions caused by fortuitous events and not to emissions caused in the normal course of operations or due to wilful action.” They also say note that what is considered “normal” may call for redefinition by the courts and in corporations’ code of conduct regarding energy and environmental practices.

Terrorism? Hmm, not sure about that since it’s pretty easy and standard to exclude it.

What about product recalls? Again, I’m not sure that I see why there should be an increase there all of a sudden, unless they are linking it to nano-tech, but even then I’m sceptical about whether nano really is going to be the horror that many are talking it up to be at present. I’m writing a paper on the issue at present, and the gossipy press is full of half-truths and junk science, which makes for a less than convincing case.

I’ll put the ‘nano-review’ up when done.