Open AccessREACH: Its Potential Implications for the Insurance Industry
Author(s) -
Christine Blach,
Jürg Schmid,
Karl Strässle
Publication year - 2006
Publication title -
chimia
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.387
H-Index - 55
eISSN - 2673-2424
pISSN - 0009-4293
DOI - 10.2533/chimia.2006.680
Subject(s) - safer , business , hazardous waste , insurance industry , authorization , liability , identification (biology) , chemical industry , actuarial science , risk analysis (engineering) , finance , computer security , engineering , botany , environmental engineering , computer science , biology , waste management
The REACH (Registration, Evaluation, Authorization on Chemicals) regulation will primarily affect the chemical industry, but it will also have an impact on industries that process chemicals, and also on the insurance industry. Of the risks a company faces some are managed within the company, whereas others are transferred to insurance companies. REACH may now change the overall risk potential of a company and, as a consequence, this change may alter the portion of risk that is transferred to an insurer. REACH may lead to the identification of so far unknown hazardous properties of chemical substances. Such new findings would increase the risk potential for all companies handling these substances and they could be the basis for new law suits. This could lead to additional exposure for the insurance industry, particularly with respect to liability. In the long run, however, REACH should lead to safer products and, as a consequence, also to a reduction in the number of insurance claims and law suits. Therefore, any kind of risk reduction is to be welcomed by all stakeholders.