Milliman Estimates PFAS Liability for Water District Remediation at $120-175 Billion
29 Julio 2024 - 2:23PM
Business Wire
Milliman, Inc., a premier global consulting and actuarial firm,
has released a groundbreaking estimate of the economic liability
associated with the remediation of perfluoroalkyl and
polyfluoroalkyl substances (PFAS) in U.S. water districts. Using a
proprietary stochastic modeling approach, Milliman projects that
the total expected cost for remediating drinking water systems
contaminated with PFAS will range between $120 billion and $175
billion.
PFAS, often referred to as "forever chemicals" due to their
persistence in the environment, have been linked to various health
issues, including cancer, liver damage, and endocrine disruption.
The Environmental Protection Agency (EPA) has recently established
maximum contaminant levels (MCLs) for various PFAS compounds in
drinking water, prompting water districts nationwide to test and
remediate their systems.
"Milliman's comprehensive modeling provides a robust framework
for understanding the significant financial implications of PFAS
contamination," said Travis Grulkowski, Principal and Consulting
Actuary at Milliman. Milliman's model incorporates a range of
variables, including geospatial, regulatory, and industry data, to
produce individualized estimates for over 140,000 U.S. water
districts. The estimates account for the presence of approximately
30 different PFAS compounds and consider the unique risks and
remediation needs of each district.
"Our approach not only estimates the potential costs but
provides insurers and corporations with the tools to navigate this
complex landscape," said Drew Groth, Associate Actuary at Milliman.
“The granularity of the model coupled with probabilistic outcomes
allows the user to integrate the estimates into various analyses,
including enterprise risk management, underwriting, pricing, and
reserving.”
The findings highlight the financial challenges that water
districts face in meeting regulatory standards and underscore the
urgent need for potentially liable parties to understand their
possible share of remediation costs. While federal and state
funding will assist, the projected costs far exceed currently
available resources, necessitating alternative funding mechanisms
and/or litigation to recoup costs.
For more information on Milliman's PFAS liability estimates and
to access the full whitepaper, please visit Milliman PFAS liability
estimate, pt. 1: Water district remediation.
About Milliman
Milliman is among the world’s largest providers of actuarial,
risk management, and technology solutions. Our consulting and
advanced analytics capabilities encompass healthcare, property
& casualty insurance, life insurance and financial services,
and employee benefits. Founded in 1947, Milliman is an independent
firm with offices in major cities around the globe. Visit us at
Milliman.com.
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Travis Grulkowski Milliman, Inc. Tel: +1 262 796 3319
Travis.Grulkowski@milliman.com