Air pollution, cloud computing, e-cigarettes among emerging liability risks cited by Swiss Re

Air pollution has “been identified as a major health risk” and has the potential to give rise to an increase in lawsuits against auto manufacturers and energy producers, while e-cigarettes and aluminum – in products ranging from antiperspirants to medication – could give rise to liability claims if plaintiffs allege they caused health problems, Swiss Re Ltd. suggested in a report published Tuesday.

The report, titled “Swiss Re SONAR, Emerging risk insights,” identifies 26 new emerging risks, from an insurance perspective, and breaks them down by high, medium and low impact.

One emerging risk with high impact is air pollution, which, Swiss Re notes, “has been identified as a major health risk in the form of chronic obstructive pulmonary disease. It has now been found to cause cancer also.”

This, Swiss Re contends, has the “potential for an increase in litigation against polluters, car manufacturers and energy companies.”

Another high impact risk is cloud computing, whereby costs for computer infrastructure, software development, storage and general maintenance, are shared.

“Shared access also fuels risks such as data leakage, data loss and hijacking of computer resources,” Swiss Re contends, adding the “potential impact” includes “internal data loss and partial business interruption,” as well as “reputational and financial damage if confidential client data is lost.”

Risks with medium impacts include e-cigarettes.

“An e-cigarette is an electronic inhaler which typically uses a battery-powered heating element to vaporise a liquid solution enriched with flavour and/or nicotine,” Swiss Re explained. “Concerns focus on e-liquids, the key ingredients in e-cigarettes, which are powerful  neurotoxins. When e-liquids are ingested or absorbed through the skin, they can cause vomiting and seizures and can even be lethal.”

Swiss Re added that if e-cigarettes “are proven to be more harmful to health than presumed today, respiratory diseases or other health problems may increase and trigger liability claims similar to tobacco claims in the past.”

Meanwhile, aluminum is sometimes contained in medical products, cosmetics and antiperspirants. The widespread use of aluminum  could have “far-reaching implications for liability insurers,” Swiss Re warned. The use in antiperspirants has “currently unknown long-term effects,” Swiss Re noted, adding that clinical studies “have indicated that … locally-applied cosmetic chemicals use may contribute to the development of breast cancer.”