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You may have heard the phrase “forever chemicals” or “PFAS” in the headlines recently, but what are they and what risks do they pose to us and our environment? We investigate what forever chemicals actually are, why they are so dangerous and how it impacts your insurance policy.
“Forever chemicals” is a term commonly used to refer to per- and polyfluorinated alkyl substances, also known as PFAS. There is much debate about how many forever chemical variants there are; while some sources make more conservative estimates, according to The Guardian there are over 12,000 varients: https://www.theguardian.com/environment/2023/feb/23/what-are-pfas-forever-chemicals-how-toxic-are-they-and-how-do-you-become-exposed.
These chemicals do not occur naturally and are highly persistent, meaning they do not degrade in the natural environment or in our bodies. They can stay in the environment and humans for decades.
A number of studies have shown a link between PFAS and a number of serious illnesses, including “cancer, high cholesterol, thyroid disease, liver damage, asthma, allergies and reduced vaccine response in children… as well as decreased fertility, newborn deaths, low birthweight, birth defects, and delayed development: https://www.hsph.harvard.edu/news/hsph-in-the-news/protecting-against-forever-chemicals/#:~:text=The%20Insider%20article%20noted%20that,birth%20defects%2C%20and%20delayed%20development.
Forever chemicals came into the spotlight in 2019 when the film Dark Waters, starring Mark Ruffalo as Rob Bilott, was released. The film tells the real-life story of environmental attorney Robert Bilott, who filed a lawsuit against chemical manufacturing company DuPont de Nemours Inc., also known as DuPont, for polluting the drinking water of a town in West Virginia with harmful forever chemicals.
According to Bilott, forever chemicals are “in the blood of virtually every person on the planet, even unborn babies: https://www.theguardian.com/commentisfree/2020/dec/17/dark-waters-pfas-ticking-chemical-time-bomb-in-your-blood.
PFAS are resistant to water, grease, heat and are non-stick, making them a favourite in manufacturing.
PFAS can be found in everyday products, including:
In an article released in February 2023, The Guardian stated that, “the world is waking up to the issue but so far action has been slow”.[4] Let’s have a quick look back at some of the key dates in the history of forever chemicals:
The Environment Agency (EA) detected the two most harmful forever chemicals (PFOA and PFOS) in 96% of surface water samples taken in the UK: https://greenly.earth/en-gb/blog/ecology-news/pfas-contamination-in-the-uk-what-are-the-forever-chemicals.
A recent study revealed that select fish caught in the River Thames contained such high levels of forever chemicals that if you were to eat fish more than twice a year you would exceed the recommended amount in the EU safety guidelines. The Thames alongside the Mersey and the Wyre showed the highest readings of PFAS in the study: https://www.belfasttelegraph.co.uk/news/uk/concerning-levels-of-forever-chemicals-found-in-uk-fish/1185224213.html.
Two particular PFAS, known as perfluorooctanoic acid (PFOA) and perfluorooctane sulfonic acid (PFOS) both long chain chemicals, have been restricted in England and Wales by the regulatory body UK REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals). In December 2021, the UK’s HSE (Health and Safety Executive) sent out a call for evidence to help prepare a regulatory management options analysis (RMOA). This research will investigate PFAS risks and recommend thebest approach to protect health and the environment from the identified risks: https://consultations.hse.gov.uk/crd-reach/pfas-rmoa-001
Once published, this research will highlight key recommendations onthe way forward for the UK in response to PFAS.
Environmental charity Fidra has called upon the Scottish Government, SEPA and Scottish Water to increase monitoring in Scotland as, compared to England, Scotland has conducted far less monitoring: https://www.heraldscotland.com/news/23456972.calls-scotland-step-monitoring-forever-chemicals-timebomb. If you click on the interactive map mentioned earlier, you will see that only four sites were included in Scotland.
From an insurance perspective, there are three main areas where cover could be affected:
Some believe that forever chemicals will follow a similar trajectory to asbestosis, with forecasts of long-tail injury claims, but with the added impact on the environment.
Some insurers have already applied exclusions on forever chemicals to their policies. It is important to check if your policy is impacted and if you are liable to PFAS exposures.
PFAS claims can be very costly. As of February 2017 chemical company DuPont was sue 671 million dollars to settle 3550 lawsuits in relation to the contamination of the town in West Virginia.
Furthermore, DuPont recently reached an agreement with Chemours and Corteva to establish a Water District Settlement Fund and collectively contribute a total of 1.185 million dollars (https://www.dupont.com/news/chemours-dupont-and-corteva-reach-comprehensive-pfas-settlement-with-us-water-systems.html). Following this, 3M paid a further 10.3 billion dollars in what has become the largest drinking water settlement in American history, according to lead atterney Scott Summy: (https://www.theguardian.com/environment/2023/jun/22/3m-settlement-municipal-water-systems-pfas-). This settlement does not include the PFAS-related personal injury and property damage claims filed by individuals and lawsuits filed by the state.
Compared to the US, claims against forever chemicals in Europe are still at an early stage. A proposed widespread ban on the use of PFAS is not expected until 2025 at the earliest so it is an uncertain time for businesses in Europe while the regulations are being deliberated.
The information contained in this article is based on sources that we believe are reliable and should be understood as general risk management and insurance information only. It is not intended to be taken as advice with respect to any specific or individual situation and cannot be relied upon as such. If you wish to discuss your specific requirements, please do not hesitate to contact your usual Ethos Broking Advisor.