Analysts at global law firm Clyde & Co believe that weed killer, diesel fumes and opioid addiction could be among key legacy concerns for UK re/insurers in 2020.
The firm reported that claims relating to exposure to glyphosate and diesel fumes during the course of an individual’s employment could be set to rise in frequency this year.
There have already been claims in the UK related to exposure to diesel fumes, Clyde & Co noted, which raises the likelihood of it becoming a significant issue for employers’ liability insurers.
“I think we’re likely to see an increase in claim numbers,” said David Tait, Partner at Clyde & Co. “Although none have been successful in the UK yet, it will only need one win to potentially open the floodgates.”
“At present, the scientific evidence is not absolutely nailed down but the assertion is that exposure to diesel fumes can lead to conditions such as dermatitis, asthma and other lung conditions,” he continued.
“Some researchers have suggested that 1-in-14 cases of dementia are related to pollution. There is also a potential increase in the risk of motor neurone disease.”
In terms of glyphosate, the scale of the litigation in the US around weed killers such as Roundup should be a concern for UK insurers, Clyde & Co warned.
Tait also highlighted opioid addiction as another area that could cause further litigation in the UK this year, with one study suggesting that half a million people have been prescribed opioid-based medication for a period of over three years.
However, analysts consider it unlikely that UK insurers will see a similar scale of claims for other issues, such as talc-related claims in respect of asbestos, due to tougher demands on scientific evidence and causative links in the UK.
Asbestos-related lung conditions remain significant in the UK at around 2,500 deaths per year, although the expectation is that numbers will begin to decrease from 2020 onwards due to the age of claimants and the reduction in the use of asbestos.
Finally, Tait pointed to the potential impact of a review of bereavement damages in England and Wales, which could result in dramatic changes in fatal claims values in the UK.
“There is a fairly concerted campaign in England and Wales to adopt these changes to fatal claims values,” said Tait. “If accepted, the changes would also affect all fatal claims including road traffic accidents and accidents while at work.”
