REACH
the European Chemicals Regulation –
a challenge for insurers
The passing of the European Union’s legislation on chemicals, REACH, has triggered other international efforts to enhance the safe usage of chemicals for industrial users and consumers. These legal changes affect the insurance risk landscape for all stakeholders involved.
The REACH Regulation (Registration, Evaluation, Authorisation and Restriction of Chemicals) creates a uniform and integrated system for the registration, evaluation, authorisation and restriction of chemicals. Its goal is to close gaps in information on chemicals and hence make the trading, handling and usage of chemical substances as safe as possible.
This report examines the effects of the REACH regulation on manufacturers, importers and commercial users in the EU. Major challenges for the insurance industry include assessing existing contracts and increasing the transparency of information, involving the legal environment, insurance covers affected and new potential exposures.
As these changes become effective in phases, the insurance industry still has time to analyse how the new regulation will affect existing portfolios and to examine resulting ramifications. This publication is intended to draw insurers’ attention to this topic at an early stage and provide them with a basis for proper decision making.
