Pollution Liability Insurance Market More Than Quadrupled In Last 15 Years

The Insurance Information Institute (I.I.I.) reports that the global pollution liability insurance market has shot up from an estimated $500 million in 1993 to between $2 billion and $3 billion today. Claire Wilkinson, the Institute's Vice President-Global Issues, said the market has expanded significantly since the late 1980s because businesses have become more sophisticated in assessing their environmental risks. Wilkinson pointed out that greater regulation has increased demand for disclosure.

Large companies in the oil and chemical industries and agencies responsible for radioactive waste depositories have been major buyers of pollution liability coverage. Demand for the pollution policies also has grown among businesses that are not generally associated with pollution but are concerned about the risk of producing, storing, or emitting hazardous materials.