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Risk in Context Podcast: PFAS risks and insurability challenges

In this episode our hosts discuss some of the main PFAS-related risks that organizations across industries and geographies are facing. They also talk about some of the insurability challenges and share actions that organizations should consider taking to address this evolving risk.

Perfluoroalkyl and polyfluoroalkyl substances, a group of chemicals known as PFAS, have come under increased scrutiny in recent years, amid concern about their impact on the environment and potential links to serious human health issues.

Often referred to as “forever chemicals” due to their resistance to degradation, PFAS are found in a wide array of consumer products. The risks related to this group of chemicals are highlighted in this year's Global Risks Report, produced by the World Economic Forum with support from Marsh McLennan and other partners.

For organizations with historic, current, or potential future PFAS exposures, developing proactive risk strategies and securing robust insurance coverage is essential to protect their operations amid an evolving global regulatory landscape.

In this episode of Risk in Context, Kimberly Mann, managing director within Marsh’s Global Environmental Practice, Chuck Moran, a senior vice president within the Complex Liability Consulting Practice, Matthew Kern, a senior vice president within Marsh’s US Environmental Practice, and Nicolas Dzubanowski, the Environmental Practice Leader for France and Continental Europe, discuss some of the main PFAS-related risks that organizations across industries and geographies are facing. They also talk about some of the insurability challenges and share actions that organizations should consider taking to address this evolving risk.

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Key takeaways

Broad liabilities require proactive risk management

PFAS’ widespread use across industries and their persistence within the environment can create complex and long-term liabilities for organizations, requiring proactive risk management.

Social inflation may contribute to increased litigation

With PFAS-related claims increasing in frequency and severity, organizations should prepare for a potential surge in litigation driven by social inflation and heightened public concern.

Tailored insurance solutions can help mitigate risks

While insurability concerns exist, organizations with current or historic PFAS risks can explore tailored policies and whether historical policies may respond to some legacy risks.

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