2006

Nanotechnology

The Plastics of the 21st Century?

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6 Manufacturing

6 Environment

7 Medicine

7 Information Technology

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8 Attribute-Related Concerns

8 Types of Exposures

8 Populations Affected

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11 Stage I: The Early Study Period

12 Stage II: The Fear Phase

13 Stage III: The Mature Stage

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Contents

Contents

Foreword

This report was prepared by Guy Carpenter & Company, Inc. in conjunction with Dr. RobertBlaunstein, National Director of Loss Control and Underwriting Manager for American SafetyInsurance Company. Previously, Dr. Blaunstein was Managing Director and co-founder ofSeneca Environmental Management (SEM), Vice President of Seneca Specialty Company andVice President of Crum and Forster Specialty Insurance Company. While Assistant Professorof Physics at the University of Tennessee and consulting scientist to the Oak Ridge NationalLaboratory, Dr. Blaunstein conducted research, provided instruction and supervised doctoralstudents in the area of atomic and molecular radiation physics. A frequent lecturer andconsultant to governmental and industrial leaders throughout the world, Dr. Blaunstein wasa Public Health Service Fellow and member of the United States Chamber of Commerce,Environment Committee and is a member of the American Physical Society, The AmericanSociety of Testing and Materials, National Groundwater Association and the Sigma XiHonorary Society. He received his Ph.D. in physics from the University of Tennessee andan M.S. degree in physics from Case Western Reserve University.

Foreword

2 Executive Summary

> Many scientists view nanotechnology as the revolutionary technology of the 21st century. Justas plastics were a pervasive and revolutionary product of the 20th century, nanotechnologyproducts are expected to have widespread use and change our lives in myriad ways.Nanotechnology products are currently in use in more than 200 consumer products, rangingfrom air conditioners to sunscreen.

> Nanotechnology is based on matter that is so small that it exists in the atomic and molecularrealm. At this size, the substance's physical, chemical and biological properties frequently aredifferent from what they were at the micrometer and larger scales. By harnessing these newproperties, researchers have found that they can develop materials, devices and systems thatare superior to those in use today.

> As with practically all scientific breakthroughs, nanotechnology carries both risks and rewards.While it appears almost certain that the rewards will greatly outweigh the risks, attention mustbe paid to possible dangers to the well-being of humans from this new technology.

> The insurance industry has a major role to play in helping society capture the benefits ofnanotechnology by helping to spread the risks.

> Nanotechnology risks are covered under a wide variety of covers, including products liability,workers compensation, professional liability and general liability.

> Insurance cover for nanotechnology products are expected to evolve in three stages:

1. An early study period, currently underway, where insurers and reinsurers studythe issue.

2. The fear phase, frequently accentuated by unfounded but terrifying rumors. Thisstage is expected to be short, given the generally benign nature of nanotechnologyproducts.

3. The mature phase, where cover routinely is provided either within conventionalproducts or on a standalone basis.

> Government regulation of nanotechnology is in its infancy. Existing regulations in Europe orthe United States generally do not distinguish between bulk and nanoscale size. In particular,detection tools for the routine checking of toxins are not adequate to address the smallness ofnano-sized matter.

> There is a great opportunity now for insurers to work with governments to shape a regulatoryenvironment that will foster the positive use of nanotechnology while sensibly addressingthe risks.

> Nanotechnology carries a great promise for improved economic and social well-being.Given sensible management of the risk by governments and the insurance industry, thisnew scientific advancement can add greatly to the progress of humanity.

ExecutiveSummary

Introduction 3

Nanotechnology is a generic term for applications that work with matter that is so small thatit exists in the atomic and molecular realm. At this size, the substance's physical, chemicaland biological properties are different from what they were at the micrometer and largerscales. By harnessing these new properties, researchers have found that they can developmaterials, devices and systems that are superior to those in use today.

From the way we communicate, to the methods used to diagnose and treat our illnesses, tothe speed with which our computers process data, this new technology promises to enhanceour lives in almost limitless ways.

Nanotechnology currently is being used to improve existing products and processes, forexample, by strengthening the material used in golf clubs and bicycle frames, creatingstain- and water-repellant clothing and producing wear-resistant paints and coatings.

One developing area in nanotechnology is that of self-assembly, whereby materials will beable to grow themselves. Such innovations will not only increase productivity, but also willcreate new materials in a process known as “dynamic self-assembly.”

In the longer term, however, nanotechnology is likely to result in completely revolutionaryadvances. Promising uses of nanoscale particles may include the cleanup of heavily pollutedsites, more effective diagnosis and treatment of cancer and other diseases, lighting that istwice as energy-efficient as what is currently available, cleaner manufacturing techniquesand much smaller and more powerful computers. Research indicates that nanotechnologyeven may help create an alternative fuel to power our automobiles.

As optimistic as researchers may be, however, responsible decisions must be made regardingits development and use. Growing evidence suggests that nanoparticles–the basic buildingblocks of nanotechnology and the tiniest materials ever engineered and produced–may poseenvironmental, health and safety risks.

Consequently, if the insurance industry is to support the myriad positive uses of nanotech-nology while not incurring major long-term losses, it must have a thorough understandingof how nanomaterials are produced, stored, used and discarded.

Introduction

4 The Relationship Between Insurance and Innovation

Risk is a major barrier to innovation. Taking a risk, however, is almost always the first step inany type of progress. The productivity of the global economy depends on companies that arewilling to find new and better ways of doing things despite the potential perils involved. If theystart to be ruled by fear of liability, our global development could be in jeopardy.

By helping businesses manage the risks associated with product development, insurers play animportant role in stimulating innovation and helping our world move forward in positive ways.From the early days of marine exploration, to the first satellite launch, to the development ofcutting-edge technologies, insurers have provided a critical safety net that hassupported and encouraged the creative process.

Given the revolutionary potential of nanotechnology and its expected use in virtually everyindustry, it is incumbent upon insurers to help accelerate its benefits. At the same time,developing a thorough understanding of the risks involved is critical.

The Relationship BetweenInsurance and Innovation

5Overview of Nanotechnology

Nanotechnology involves both:

> The deliberate manipulation of matter by certain chemical and/or physical processes(referred to as “bottom-up” production) to create materials with specific properties thatare not displayed in their larger forms.

> The use of manufacturing processes such as milling or grinding (called “top-down”production) to produce nanosized particles. These particles may or may not haveproperties different from those of the bulk material from which they are developed.

At the core of any process involving nanotechnology is a nanometer (nm), which is onebillionth of a meter and 10,000 times smaller than anything that the human eye can see.

Although the trend towards making things smaller is nothing new, the reduction of mate-rials to the size of nanometers results in both new and altered properties. For example,some materials begin to exhibit extraordinary electrical conductance, resistance or newmagnetic properties. Some become bactericides, and others demonstrate exceptionalstrength and water-repellency. Certain nanomaterials can even interact with biomolecules,which may enable them to improve medical diagnosis and tissue and organ replacement.

These unique physical, chemical and biological properties generally exist for two reasons:

> At the scale of nanometers, particles and structures have a very high surface-to-massratio. This makes them highly reactive compared to their bulk structure, and this reac-tivity can be channeled to produce superior products.

> Nanometers exist in the realm of quantum physics, and quantum properties are similarlyvaluable in developing enhanced materials.

Overview of Nanotechnology

6 Benefits to Global Economy: Manufacturing

This push to extend the boundaries of science comes just in time. According to estimates by theUnited Nations World Resources 2000 report, our world population will expand by 50 percent inthe next 50 years, world economic activity will grow by 500 percent and use of global energyand materials will increase by 300 percent. The ramifications of these numbers are staggering,and the development of new ways to respond to burgeoning demands is critical.

Nanotechnology-driven processes are spreading rapidly, with positive uses that may be virtuallylimitless. Current and longer-term benefits are likely to be realized in several key areas.

The benefits of nanotechnology to manufacturing are, and likely will continue to be, consider-able. As noted earlier, the process of breaking material down into nanoparticles allows it to berebuilt atom by atom, in order to create products with superior strength, decreased weight andsize and impervious coatings.

Nanotechnology also will extend miniaturization to a level that few of us could have imagined.From the size of computer chips, to the space required for the design and manufacture ofproducts, we will need to redefine our notion of “small.”

An auxiliary benefit is that nanotechnology-driven manufacturing will not produce the sametypes or amounts of waste as did previous production methods. For example, fewer rawmaterials are required, which means less need to use up natural resources. This increasedconsumption also may mean decreased waste.

In addition, processes likely will become less labor-intensive since, once a molecularmanufacturing process is in place, fewer people will be needed to make it run.

Nanotechnology-based processes promise higher agricultural yields, diminished pollution,renewable energy sources and less expensive water filtration systems.

The U.S. Environmental Protection Agency reports in its draft white paper on this subject thatnanotechnology could reduce worldwide energy consumption by as much as 14.6 percent,which will decrease carbon emissions and save billions of dollars per year.

Nanotechnology also has the potential to control pollution through “source reduction.” This isa method of eliminating toxic waste at its source, with the understanding that releasing thewaste into the environment is the last resort. Source reduction can be achieved by cleaning upexisting processes or by reducing consumption of resources where such consumption createspollution.

There are several examples of how nanotechnologies can help our environment.

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One nanotechnology-based application expected to be introduced in the near term is enhancedsensors for detecting biological and chemical contaminants. These sensors will be able toidentify harmful agents at very low environmental concentrations, reducing measuring costsand improving specificity.

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Zero-valent iron has been used successfully to treat contaminants in groundwater by forminga permeable reactive wall. Nanoscale iron particles also may be used to counteract densenonaqueous phase liquid (DNAPL) contaminants found in aquifers, which can substantiallyreduce the cost of environmental cleanups.

Benefits to Global Economy

Manufacturing

Environment

Benefits to Global Economy: Medicine 77

Other nanomaterials also show promise in breaking down trichloroethylene, tetrachloroeth-ylene and carbon tetrachloride, all serious contaminants.

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Nanotechnology can contribute to reduced energy demands by creating lighter materials fortransportation vehicles, enabling the reflectivity of roofing material and improving the useof alternative energy technologies such as solar energy. It also can allow the molecular-levelcontrol of industrial catalysis, improve the production of hydrogen by solar power and reduceelectrical transmission line losses. As previously noted, given these benefits, the annual reduc-tion in U.S. energy consumption could reach nearly 15 percent.

Although it is a long way from commercialization, the development of an alternative fuelsource is a potential application of nanotechnology that is becoming more critical each day.Research is being conducted to determine the effectiveness of carbon nanotubes to storehydrogen, which could lead to a fuel that powers not only cars but also laptop computers,cellular phones, digital cameras and various other electronic devices.

Some of the most promising findings have been in the area of health and medicine, wherenanotechnology is expected to revolutionize the ways that we detect, prevent and treat variousdiseases and medical conditions.

The National Institutes of Health has funded research in such areas as the development of ananotechnology-based targeted delivery system for anti-cancer drugs, creation of a nano-fibertechnology for blood vessel replacements and the design of a method to control delivery ofmedication to treat drug and alcohol addictions. These and other studies show that, becausenanoparticles are so much smaller than human cells, they can function within cells to detectdiseases in their very early stages and administer treatment right to the source.

Nanotechnology also offers tremendous benefits to the computer industry. Many major compa-nies are working with nanoparticles to create significantly smaller storage devices than thosecurrently available, as well as processors that will run many times faster than those on themarket without any additional power consumption.

Medicine

Information Technology

8 Associated Risks: Attribute-Related Concerns

Although there are now only a limited number of products in the marketplace that containengineered nanomaterials, the pace of nanotechnology development virtually assures that thiswill not be the case for too long. Consequently, the government, insurers and other key industryparticipants–both in the United States and abroad–are concerned about the associated environ-mental, health and safety impact. These interested parties are working together to develop abetter understanding of nanomaterial's properties and risks.

The following attributes of nanoparticles create a number of unknown exposures:

> Size of particles: The size of nanoparticles makes them incapable of being measured usingnormal techniques.

> Increased reactivity and conductivity: Nanoparticles are more reactive and conductive thanparticles larger in size. As such, materials that have been benign in the past may becometoxic in nanoparticle form.

> Routes of exposure: Because of their size, nanoparticles can be inhaled or ingested andmay even enter the body through the skin. In addition, they are capable of crossing theblood-brain barrier, which protects the brain against contamination.

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To predict the health risks associated with nanomaterials, we must know the facts, such asroutes of exposure, the number of particles actually absorbed, movement of materials oncethey enter the body and their impact on the body's regulatory system. Adequate information isnot yet available in these areas to determine with any certainty whether,or how, nanotechnology can affect our health.

Research has suggested, however, that nanoparticles may be able to enter the body throughroutes impenetrable by larger particles and then possibly gain entry into the circulatory system.Studies in rats also have shown that ultrafine particles smaller than 100 nanometers are morecapable than larger particles of the same substance of causing lung inflammation and tumors.In addition, there are concerns that nanoparticles may interfere with the body's biologicalprocesses and potentially affect the immune system.

Nevertheless, many more studies need to be completed before any health risks associated withnanotechnology are more than just a matter of speculation.

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Very little is known about the safety risks presented by engineered nanomaterials. Given theirunique properties, particularly their increased reactivity and electrical conductivity, safetyconcerns are focusing on whether nanomaterials could cause fires or explosions.

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Because nanoparticles behave differently from larger particles, questions have arisen aboutwhether they can pollute the water supply or damage crops during processes that release theseparticles into the air, soil or water. Again, studies in this area are in their infancy.

In the short term, the major health and safety risks will be to researchers in laboratories andproduction staff exposed during the manufacturing of nanomaterials. People in these occupa-tions must be aware of the potential hazards of using materials that have unknown properties,and they must take measures to mitigate their risks. However, their activities are contained andgenerally do not pose a threat to the public or to the environment.

Associated Risks

Attribute-Related Concerns

Types of Exposures

Populations Affected

9Associated Risks: Populations Affected

CCoommmmoonn TTyyppeess ooff NNaannoommaatteerriiaallssAmong the many types of nanotechnology-produced materials, four in particular are receivingsignificant attention: buckyballs, nanoparticles, carbon nanotubes and quantum dots.

BBuucckkyybbaallllssA buckyball (short for Buckminster Fullerene) is a molecule containing carbon atoms that arebound together into a hollow sphere. Because carbon atoms bond to many other types ofatoms, a buckyball can be used to create larger customized molecules.

Perhaps the most exciting potential for buckeyballs is in the fields of health and medicine.Because nanomaterials are hundreds to thousands of times smaller than human cells, andare similar in size to biological molecules, they can react with biomolecules on the surface ofcells or within cells.

Using buckyballs, scientists may be able to create nanodevices that can enter cells or evenmove easily throughout the bloodstream. These devices may thus provide access to parts ofthe body that were previously not easily accessible. For example, it is hoped that buckyballsmay be used in the targeted delivery of medications directly to infected regions of the body.By placing the medication inside an array of buckyballs and injecting them into thebloodstream, the buckyballs can find their way to the diseased site and release the drug.

NNaannooppaarrttiicclleessNanoparticles are tiny particles consisting of a single element or compound. Well knownexamples include titanium dioxide nanopowder (used in suntan lotions and cosmetics) andferrous oxide particles (used in imaging, such as x-ray films). What makes nanoparticlesinteresting and useful is that they exhibit properties that differ from the bulk material fromwhich they are derived. They can increase material strength, provide impervious and slipperycoatings and improve energy transfer in solar cells.

CCaarrbboonn NNaannoottuubbeessCarbon nanotubes are composed of carbon atoms bound together into long thin tubes lessthan 2 nm in diameter. Classified as either single-walled or multiwalled, their extraordinaryproperties include a density of 1.4 grams/cc, compared with aluminum at 2.7 grams/cc; ten-sile strength of 45 billon pascals, while steel alloys break at 2 billion pascals; and the abilityto carry 1 billion amps/cm2, whereas copper wires burn out at 1 million amps/cm2.

Some of the more positive uses of carbon nanotubes may be in the design of semiconductors,chemical and genetic probes and field emission based devices such as flat-panel displays.

QQuuaannttuumm DDoottssA quantum dot is a nanosized crystal that emits light after an outside source, such asultraviolet light, and excites the electrons in the material.

Quantum dots are generally inert in the body and consequently are very useful in taggingproteins and nucleic acids. When ultraviolet light is shined on a sample, the quantum dotsglow, indicating the locations of attached proteins and yielding substantial useful information.

10 Regulation

Regulators in the United States, the European Union and elsewhere around the world believethat nanoparticles represent an entirely new risk and that it is necessary to carry out anextensive analysis of the risk. Such studies then can form the basis for government andinternational regulations.

Existing regulations may prove to be grossly inadequate in providing a safe environment in aworld of nanotechnology products. Studies of the impact of airborne particles generally haveshown that the smaller the particles, the more toxic they become. This is due in part to thefact that, given the same mass per volume, the dose in terms of particle numbers increases asparticle size decreases. As a result, standards developed for mass products may prove to behighly insufficient for nano products.

In general, it is to be hoped that regulation of nanotechnology will be conducted in a compre-hensive fashion, taking account of the specific manufacturing and use environments of thesenew products. It is likely that the silo form of substance regulation in place for mass productsmay not be appropriate for products of nano size, where a high degree of reactivity tends tochange the level of risk across different environments.

Regulation

Likely Evolution of Insurance Covers

11Likely Evolution of Insurance Covers: Stage I: The Early Study Period 11

Nanotechnology risks are covered under a wide variety of insurance covers, including productliability, workers compensation, professional liability and general liability.

Establishing direct relationships and definitive conclusions between exposure to manufacturednanoparticles and health and environmental effects may take years. In the meantime, it is toosoon to make broad and sweeping decisions about exclusions of nanotechnologies from policycover because:

> Exposure to the general public is still low.

> The various nanotechnologies encompass a broad array of activities–without a uniformdescription and with very different risk characteristics.

> There is significant diversification between the various nanotechnologies within mostinsurance portfolios, which has the effect of alleviating adverse selection among thedifferent nanotechnologies.

We at Guy Carpenter believe that insurance coverage for nanotechnology is likely to evolve in amanner similar to other changing technologies. Initially, covers for the risk are likely to mimicexisting covers for product liability. Over time, the specific risks posed by nanomaterials will bestudied, knowledge will grow and customized covers will be developed.

We have observed similar progress with other evolving technologies. Going back to the originsof modern insurance, the first policies written were for ocean marine, reflecting the dominantform of travel and commercial transportation, which was by sea. As transportation of goodsdeveloped internally by canals and roads, inland marine policies evolved to reflect the newerand different risks posed by inland transportation. The final result is a wide variety of coversin the inland marine field, many of which––like “Accounts Receivable” and “Electronic DataProcessing”––have a tenuous relationship to transportation by water.

We envision cover for nanotechnology to evolve in three stages.

This stage is currently underway. It is characterized by continued cover under existing policiesand efforts by insurers and reinsurers to become more familiar with the special risks posed bynanotechnology.

The scarcity of data about nanotechnology makes it a challenge to anticipate and respond to itsrisks. To address this problem, the federal government is funding research into this technology'senvironmental, health and safety (EHS) impact. The National Nanotechnology Initiative, createdby 24 federal agencies, has a 2006 budget of more than $1 billion earmarked for nanotechnologyresearch and development. Those agencies most heavily involved in researching the EHS proper-ties of nanomaterials are the Environmental Protection Agency (EPA), Occupational Safety andHealth Administration (OSHA) and the National Institutes of Health (NIH).

The three major objectives of this federally funded research are:

> to expand the scope of information on the behavior of nanomaterials.

> to develop instruments that can measure and test nanomaterials and monitor exposure.

> to assess the safety of nanomaterials across all areas of usage.

Stage I:The Early Study Period

12 Likely Evolution of Insurance Covers: Stage II: The Fear Phase

Concurrent with government research, insurers are gathering information about businessesthat produce, use, store or dispose of nanomaterials and/or products containing nanomaterials.In particular, the industry is assessing potential property damage, bodily injury to workers andthe public and the environmental liabilities associated with businesses handling and usingnanomaterials.

In this stage, insurers and reinsurers begin to harbor fears that the nanotechnology risk may behigher than earlier estimated. Scary media stories give rise to doubts among CEOs of insurancecompanies. Insurers and reinsurers begin to look at reducing cover, and pressure develops torestrict risk transfer by the use of sub-limits and “claims-made” covers.

Given what we currently know about nanotechnology risks, the fear stage is likely to be mild.While studies of the long-term health impacts of nanomaterial exposure are in their infancy, sofar there have been no smoking guns or evidence of mass health deterioration as, for example,experienced with toxic substances like asbestos or lead.

If the private market fails:

While not our basic scenario, there is a definite possibility that the fear stage will result in somewithdrawal by insurers and reinsurers from nanotechnology covers. Given the importance ofnanotechnology to the forward growth of developed economies, we are likely to see govern-ments propose various solutions to problems of lack of availability of insurance.

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State-run pools may play an important role in ensuring the availability of coverage during thisperiod. Such pools can assume the most volatile aspects of writing nanotechnology-relatedbusiness by mutualizing and balancing the funding of exposures across all constituencies andthus enabling insurers to provide a lower-cost product to clients.

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Until such time as the associated risks can be quantified, the government may act as a back-stop to limit the liability of those industries that design or use nanotechnology-driven productsor processes.

One example of how the government can provide this type of support is the U.S. Congress's 1957enactment of the Price-Anderson Act, which limits the nuclear industry's liability in the eventof a nuclear accident in the United States.

Under the Act, each utility is required to maintain the maximum amount of coverage availablefrom the private insurance industry, which is currently $200 million per reactor. Above thatamount, the Act establishes two insurance tiers. The first, which is funded by requiring eachnuclear operator to pay up to $88 million for each reactor it operates, is triggered if claimsfollowing a nuclear accident exceed the coverage provided by private insurers. If this firstinsurance tier is depleted, any additional claims are covered by the federal government.

In order to accept the unknown risks of nanotechnology, it may be necessary for insurers toestablish a no-fault system in which the industry funds the first layer of insurance accordingto a predetermined scheme, and any claims above that amount would be covered by thefederal government

Stage II: The Fear Phase

13Likely Evolution of Insurance Covers: Stage III: The Mature Phase

In this stage, customized solutions are likely to be available at reasonable rates in boththe insurance and reinsurance markets.

Insurers will know, with more precision, the types of losses that this new technology canproduce and how frequent and severe these losses might be. When these risk componentscan be more accurately determined, insurers can better predict future losses and calculatean appropriate premium. At this point, standard forms specific to the new exposurescan be developed.

We would envisage three separate forms of cover in this mature phase:

> Covers designed around legislation, in a manner similar to some EnvironmentalImpairment Liability policies.

> Standalone cover, similar to Employee Practices Liability Insurance (EPLI).

> Covers integrated into standard policies.

Stage III:The Mature Phase

14 Conclusion

As is the case with most emerging areas of risk, nanotechnology challenges us with manyunknowns. These challenges are further complicated by the fact that few risk-related forecastshave been scientifically confirmed.

Many industries are extremely optimistic about the opportunities associated with nanotechnology.If they are not currently exploring its potential, they are likely to do so in the very near future.

Because insurers play such a critical part in enabling new and beneficial technologies, it iscritical that they work together with manufacturers, the government, scientists and regulatoryagencies to identify and quantify nanotechnology's risks. Public response to this new technology,as well as the legal climate, will depend upon how much accurate information is available.

We at Guy Carpenter believe that managing the unknowns associated with the development anduse of nanotechnology will not be much different from gauging the risks involved with environ-mental liability (EL) or employee practices liability (EPL). Standard, affordable coverage willeventually be available. In the meantime, by using claims-made forms and setting appropriatedeductibles and limits that are commensurate with unknown risks, insurers can mitigate theirpotential losses and still participate in this exciting new market.

Automotive

Lightweight construction; catalysts and painting;tires; sensors; windshield and body coatings

Chemical

Fillers for paints; composite materials;impregnation of papers; adhesives;magnetic fluids

Construction

Materials; insulation; flame retardants; surfacecoatings; mortar

Cosmetics

Sunscreen; lipsticks; skin creams;toothpaste

Electronics

Displays; data memory; laser diodes; fiberoptics; optical switches; filters; conductive andantistatic coatings

Energy

Lighting; fuel cells; solar cells; batteries;capacitors

Engineering

Protective coatings for tools and machines;lubricant-free bearings

Environmental

Environmental monitoring; soil and ground -water remediation; toxic exposure sensors; fuelchanging catalysts; green chemistry

Food and Drink

Packaging; storage life sensors; additives;juice clarifiers

Household

Ceramic coatings for irons; odor removers;cleaners for glass, ceramics and metals

Medicine

Drug delivery systems; contrast medium; rapidtesting systems; prostheses and implants;antimicrobial agents; in-body diagnostic systems

Sports

Ski wax; tennis rackets; golf clubs; tennis balls;antifouling coatings for boats; antifoggingcoatings for glasses and goggles

Textiles

Surface coatings; “smart” clothes (anti-wrinkle,stain resistant, temperature controlled)

Warfare

Neutralization materials for chemical weapons

NANOTECHNOLOGY SECTORAPPLICATIONS

Source: Analysis of Nanotechnology from an Industrial Ecology Perspective Part I: Inventory & Evaluation of Life Cycle Assessments of Nanotechnologies.

Conclusion

15Selected References

Allianz Group. 2005. “Small Sizes That Matter: Opportunities and Risks ofNanotechnologies.” Allianz AG: Munich.

Amall, A.H. 2003. “Future Technologies, Today's Choices.” Greenpeace Environmental Trust:London.

Harris, P. 1999. “Carbon Nanotubes and Related Structures.” Cambridge University Press.

Kingdollar, C. 2005. “Hazardous Times® – Nanotechnology – Will Minute Items Have aHuge Impact on the P/C Industry?” General Re Corporation.

Lekas, D. 2005. “Analysis of Nanotechnology from an Industrial Ecology Perspective Part I:Inventory & Evaluation of Life Cycle Assessments of Nanotechnologies.”

Masciangioli, T. and Wei-Xian Zhang. 2003. “Environmental Technologies at theNanoscale.” Environmental Science & Technology.

Munich Re Group. 2002. “Nanotechnology: What Is In Store for Us?” MünchenerRückversicherungs-Gesellschaft AG: Munich.

Nanobusiness Alliance. 2006. “Nanotechnology EH&S: A Roadmap for ResponsibleInnovation.”

National Institute for Occupational Safety and Health, Centers for Disease Controland Prevention. 2005. “Approaches to Safe Nanotechnology: An Information Exchangewith NIOSH.”

Roco, Mihail, and W.S. Bainbridge, Editors. 2003. “Nanotechnology: Societal Implications -Maximizing Benefit for Humanity.” Report of the National Nanotechnology InitiativeWorkshop. Arlington, Virginia: National Science Foundation.

Swiss Re. 2004. “Nanotechnology: Small Matters, Many Uknowns.” Swiss ReinsuranceCompany: Zurich.

U.S. Environmental Protection Agency. 2005. “External Review Draft of NanotechnologyWhite Paper.”

Selected References

Questions or comments regarding

this report should be addressed to

the authors, who are dedicated

to addressing emerging

nanotechnology issues.

Andrew Marcell

Managing Director

Worldwide Casualty Specialty

Practice Leader

Guy Carpenter & Company, Inc.

917.937.3171

Andrew.Marcell@guycarp.com

Harrison Oellrich

Managing Director

Worldwide Cyber, Technology

and Intellectual Property

Practice Leader

Guy Carpenter & Company, Inc.

917.937.3199

Harrison.D.Oellrich@guycarp.com

Sandy Hauserman

Senior Vice President

Worldwide Environmental

Specialty Practice Leader

Guy Carpenter & Company, Inc.

917.937.3126

Sandy.G.Hauserman@guycarp.com

Guy Carpenter & Company, Inc. is the world's leading risk and reinsurance specialist and a part of the Marsh &McLennan Companies, Inc. Guy Carpenter creates and executes reinsurance and risk management solutions forclients worldwide through 2,600 professionals across the globe. The firm's full breadth of services includes 16centers of excellence in Accident & Health, Agriculture, Alternative Risk Transfer, Environmental, GeneralCasualty, Investment Banking*, Life & Annuity, Marine & Energy, Professional Liability, Program ManagerSolutions, Property, Retrocessional, Structured Risk, Surety, Terror Risk, and Workers Compensation. In addition,Guy Carpenter's Instrat® unit utilizes industry-leading quantitative skills and modeling tools that optimize thereinsurance decision-making process and help make the firm's clients more successful. Guy Carpenter's websiteaddress is www.guycarp.com.

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Nanotechnology: The Plastics of the 21st Century? © 2006 Guy Carpenter & Company, Inc.M1689.07.2006.2M