However, some scientists believe that some nano-materials may cause health or environmental impacts.  The Royal Commission report on novel materials has made an urgent call to bridge the knowledge gap of the potential environmental and health impacts of nanotechnologies in a systematic and strategic way. They say “we strongly recommend a more directed, more coordinated and larger response led by the Research Councils to address the critical research needs…”.

There is also a call to amend regulations, such as REACH, so that they can be effectively applied to nano-materials.  This is very much in line with the report published by Lloyd’s Emerging Risks team on Nanotechnology.

Our report proposed some systemic failure scenarios, a theme also recommended by the Royal Commission who call for  “Evaluation of methodologies for predicting the likely fate and effects of nano-materials based on their physical and chemical properties as well as their novel properties, and where possible, the development of exposure scenarios.”

If the Commission’s governance recommendations are followed there will be considerably more clarity around responsibilities.

For example they call for DEFRA to require mandatory reporting where food contains nano-particles; they also suggest that companies should have a legal duty to report any suspicion that a material presents a risk to the public or the environment.

Such clarity can only be useful to insurers providing liability cover given that companies are operating in an increasingly litigious world, as highlighted by the Lloyd’s 360 report “Directors in the dock“.

It will be fascinating to follow this debate as it progresses.