Lloyd’s prepared to take on mobile risks
22 October 2007
Mobile phones are now so ingrained in our daily lives that the thought of living without them is impossible. Commercially and personally, mobile technology has revolutionised the way in which we live.
So what would happen if, say in 20 years time, the link between the electromagnetic fields (EMF) generated by mobiles is proven to be linked with a higher susceptibility to illness? How are London’s underwriters protecting themselves from opening the flood gates to future claims without prejudicing policyholders?
The number of reports on mobile telecommunications and its impact on health is immense, and the study findings are often conflicting. With the technology still relatively new, measuring the effects of long term use of a mobile is complex and the results are never certain.
According to the recent government backed report by the Mobile Telecommunications and Health Research (MTHR) Programme, mobile phones cannot be linked to any biological or adverse health effects. The £8.8m report was the largest of its kind in the UK.
Despite this there have been reports of teachers across Europe calling for a ban on wireless networks in schools. And one group participating in the Interphone study, which compares the mobile phone use of 7,000 people with tumours and a similar number across 13 countries including Britain, has suggested there is a link. The report is expected to be published by the Lyon-based International Research on Cancer next year.
Guy Malyon, Head of Casualty broking for Aon Global, said: “There is a lot of debate about the effect which electromagnetic fields can have. Essentially it is the same premise there has been with tobacco - some would suggest that smokers die younger, but it is very difficult to connect the two, although nowadays few people doubt the health risks of smoking.”
He said underwriters assess the possible impact by being industry specific and assessing the risks accordingly. “There are markets that will write telecoms liability cover which provides express coverage for bodily injury and property damage due to EMF exposure and there are those that won’t. Each side will get all the information coming through. It is hard to prove that the closer you are to an electric pylon the more damage it causes.”
Jon Upshall, Director of Casualty broking for Aon Global, specialising on the telecoms and media sectors, added: “There is ongoing debate as to whether there is a causational link between EMF emissions and leukaemia, with the present weight of scientific evidence suggesting there is no correlation.
There remains, however, the possibility that a real link could be proven. Malyon said: “There aren’t many EMF claims out there, but the concern is that it could be the next big thing. In the US there is also the risk that US plaintiff lawyers could use the class action rules there to pursue EMF related actions in the way that they have tried previously with tobacco and other perceived health hazards.
“A similar thing could happen with mobile phones. Who knows, they could be forced to put warnings on the phones to prevent lawsuits in the future.”
Last updated on 22 Oct 2007
