The (re)insurance industry faces a growing wave of challenges—cyber threats, geopolitical tensions, inflation—and a significant emerging risk of per- and polyfluoroalkyl substances (PFAS). These persistent chemicals are subject to growing litigation and regulatory oversight. With risks accelerating, insurers need to prepare for this volatile and uncertain future. This article, first published in Intelligent Insurer, answers several key questions.

Read the full article at Intelligent Insurer.

Key takeaways

• Why do PFAS represent a systemic risk to the insurance industry? PFAS introduce a new set of challenges, and the financial implications could play out over decades.
• What does the PFAS litigation landscape look like today? More than 10,000 lawsuits are pending in the United States alone, with more than $17 billion already announced in settlements.
• How might emerging causes of action and a growing pool of defendants shape the liability footprint? These factors will raise the likelihood of claims affecting multiple lines of business.
• How can the insurance industry begin to quantify PFAS liabilities? Rather than wait for perfect data, insurers should use current insights, model risk with credible leading indicators, and adapt continuously.
• What proactive steps can insurers take now? Begin by assessing potential exposure and collaborate closely with legal and claims teams.