German insurers are being advised to introduce clauses excluding coverage for damages linked to “forever chemicals” (PFAS), as concerns over costly lawsuits and environmental liabilities prompt an industry-wide shift, according to Euractiv.
The move, spearheaded by the German Insurance Association (GDV), aims to shield insurers from what some warn could become the sector’s most expensive claims in history, surpassing even asbestos-related costs.
Under new guidance issued on Wednesday, the GDV recommended insurers adopt model clauses excluding PFAS-related liabilities from commercial, product liability, and environmental policies. The association argued the step would incentivise companies to phase out PFAS use while allowing bespoke coverage negotiations.
The chemicals, used in everything from waterproof clothing to non-stick cookware, persist indefinitely in ecosystems and have been linked to health risks including cancer and developmental issues.
The GDV’s move precedes potential EU-wide restrictions, currently under review by the European Chemicals Agency. Green MEP Jutta Paulus hailed the insurers’ stance as a signal for policymakers to act swiftly.
It is telling that the insurance companies want to remove the risk of PFAS from their portfolios. Politicians would do well to set a framework to protect the public and the environment from the consequences of the use of these long-lasting chemicals, and to protect companies from the financial risks.
However, Germany’s likely incoming coalition of Social Democrats and Christian Democrats has rejected calls for a blanket PFAS ban, favouring targeted regulations instead. This clashes with demands from environmental bodies, including Germany’s Federal Environment Agency (UBA), which advocates a full phaseout.
Meanwhile, the German Energy and Water Industries Association (BDEW) reports “alarming” PFAS contamination in water supplies, urging legal action against manufacturers to fund cleanup efforts.
