Swiss Re's annual emerging risk report has put the spotlight on plastics as a significant threat to insurers, with scientific advances in causation and source attribution potentially sparking rapid increases in liability claims against producers, users and waste managers.
The second largest reinsurer in the world's recent SONAR 2025 report projects plastic production will reach 736 million tonnes by 2040, which is a 70 per cent increase since 2020.
Made predominantly from fossil fuels, almost half of all plastics are single-use items with less than 10 per cent recycled due to inadequate disposal systems.
Around two-thirds are incinerated or landfilled in a controlled manner, and more than 25 per cent leak into terrestrial or aquatic environments, the report said.
Insurers now faces mounting exposure as plastic particles infiltrate environments, waterways and food chains.
Micro- and nanoplastics are increasingly found throughout ecosystems, with recent research documenting their presence in human digestive systems, bloodstreams, organs and even brain tissue.
"Findings include increasing presence of plastic particles in the body, including in the digestive system, blood stream, liver, kidney and even the brain," Swiss Re researchers note.
The report warns that establishing causal relationships between plastic pollutants and adverse health outcomes could trigger significant litigation.
"If a causal relationship between pollutants and their sources is established, this will provide plaintiffs with evidence of pollution emanating from specific industries and/or companies," the report states.
California's attorney general Rob Bonta filed a lawsuit against ExxonMobil in 2024 for allegedly misleading the public about plastic recyclability and environmental pollution potential.
The report notes rising plastics litigation in the US, particularly through class action and consumer protection lawsuits, with terms such as "Big Plastic" being used in a similar manner to "Big Tobacco", suggesting a litigation focus on a whole industrial sector," the researchers observed.
European consumer protection regulations are also increasing propensity for plastics-related litigation, with the 2024 revision of the EU Product Liability Directive shifting the burden of proof to producers.
Product liability claims on the horizon
Beyond environmental liability, the insurance sector faces exposure through product liability claims, Swiss Re believes.
Cases of contested labelling include producers of bottled water and baby bottles being sued for marketing products as safe despite microplastics and chemical additives leaking from them.
While direct causal links between plastic exposure and specific diseases remain unestablished, growing evidence suggests plausible pathways for health impacts.
Research has found correlation between particles lodged in blood vessels and increased propensity for heart attacks, strokes or death, alongside neurotoxic effects on the brain.
"If evidence is established, L&H [life and health] business may be affected via several different causes of mortality and morbidity, though no mitigation measures exist at present," the report warns.
The financial sector also faces growing exposure to plastics-related risks.
"Long-term asset values are also at risk as fossil-fuel-based plastic production faces declining demand, regulatory penalties and policy driven phase-outs," Swiss Re notes.
The report suggests current ESG indices and ratings often inadequately capture plastic-related sustainability risks, long-term demand risk and stranded assets.
For specialty insurers, projects to reduce plastic pollution, boost recycling and develop alternatives may provide new opportunities, with rising demand expected for pollution-related coverage as regulations tighten.
"Companies may seek cover for associated legal defence costs and potential settlements," the report concludes.
Swiss Re rates the potential plastics litigation as a medium term emerging risk, with medium impact.
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