Genetically modified organisms in agricultural insurance

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Genetically modified organisms in agricultural insurance

Mieczysіaw Јozowski

Abstrakt

The еffects of the broad using the genetic product designing influence upon ambience and user. They belong to the specific group to dangers. The Possibilities of the using genetic technology, ing in agricultures, as this is shown on drawing (Fig.) 1 point to broad fields of activity of the insurance companies. The risk assessment very important and has a direct relation to risk, coming from genetic modified products. Here, the important role belongs to the insurance companies in rural-economic sector. The this work is dedicated to decision of the main problems to registrations and insurances on problem, specified by vyshe.

Key words: Genetic engineering in the agricultural sector, GMO related risks, negative influence and susceptibility to losses, insurance coverage of GMO risks. genetic product agriculture

1. A gene as the basis for life on earth

Effects of launching genetic engineering products and such products influence on the environment and consumers belong to a specific group of threats. Opportunities of applying genetic engineering in agriculture that are shown in Figure 1 indicate wide areas of challenge for insurance companies. Assessment of risk related to the phenomena in question should undoubtedly concern assessment of all related threats and opportunities. It should be added that many authors who identify catastrophic risks do not introduce any risk that results from outcomes of genetic modification to their considerations.

Figure 1. Application of genetic engineering in the agricultural sector.

Source: Own elaboration on the basis of O.S. Wild: Agricultural Insurance in Transition, Swiss Reinsurance Company, Zurich 1997.

Considerations on potential threats related to introducing genetic engineering in agriculture should begin with stating that each organism has its so-called genetic information that contains complete information on the basic factors related to its functioning A so-called genotype. Organisms are also influenced by environment and phenotype related factors.. Depending on the level of metabolism complexity and development, there are different numbers of information units (called genes). Genes do influence numerous functions of organisms e.g. disease immunity, metabolism, features of appearance, etc. It is estimated that a human being has approximately 100 000 genes, plants have about 25 000 genes, simple micro-organisms possess circa 3 000 genes. According to historical traditions already 10 000 years ago human beings began cultivating wild plants simultaneously trying to obtain better crops and nutrients or make their plants immune to pests and diseases that threatened potential crops.

Despite long-lasting attempts and reaching many breeding targets approximately 30% of crops are still damaged by diseases and pests. Such damages form the basis for continuous searching for new methods and improving agriculturally useful organisms. Traditional methods of breeding are commonly applied but gene manipulation gains in popularity.

Classical breeding methods mainly involve crossbreeding of parental units in order to mix a chromosome set. During the whole process random mingling of parental properties is observed. Many years of breeding efforts may result in, for instance, transferring a gene of immunity to Erysiphe graminis from wild varieties of rye to breeding varieties. Such a time consuming process lasts approximately 10-15 years on average W. Schuchert, S. Benner: Gruene Gentechnik. Max-Planck-lnstitut fuer Zuechtungsforschung, Koeln 2000..

Implemented and utilised methods of genetic engineering allow for precise and rapid transfer of individual genes that are adequate to breeders' desired properties. That is why, a new instrument in form of genetic engineering is frequently considered to be some hope for potential agricultural production.

Figure 2 introduces interdependencies and highlights differences between both methods. It is necessary to stress that only combinations of closely related organisms may be obtained by means of classical methods. On the other band, genetic engineering provides for a possibility to transfer genetic codes of organisms that belong to different species. For instance, it is more and more common to transfer useful bacteria genes to plant cultures.

Figure 2. Process of plant breeding carried out by means of classical and genetic engineering methods

Source: Own elaboration on the basis of W. Schuchert, S. Benner: Gruene Gentechnik. Max-Planck-Institut fuer Zuechtungsforschung, Koeln 2000.

In geneticists' opinion, new methods that were initially treated as supplementary to classical ones are currently thought to be an important and indispensable tool that allows for progress in breeding of functional organisms.

It is necessary to remember that in spite of breeding efforts undertaken / humans, spontaneous mutation processes (sometimes stimulated by human actions) are still observed. It is estimated that recently approximately two hundred weeds that are immune to herbicides have emerged.

2. Functional outcomes of genetic efforts

When organisms with in-built appropriate properties leave laboratories, they are checked in field cultures. As a result new varieties are obtained. Analysing already known results of applying genetic engineering in particular products, it is possible to show a potential scale of threats.

Table 2.Examples of influence of genetic engineering in agriculture on insurance

Source; Own elaboration on the basis of O.S. Wild; Agricultural Insurance in Transition. Swiss Reinsurance Company, Zurich 1997.

A functional outcome obtained by means of genetic modifications is remarkable. Such an outcome also indicates enormous economic potential that refers to continuous emergence of modifications.

The following possibilities of using genetic modifications in plant production may complete a list of those presented in Table 2:

- improving varieties of e.g. Triticale (X Triticosecale) by means of some gene transfer from Agrotriticum Research by IGiHR AR in Lublin: D. Gruszecka, E. Czerwieсska: Charakterystyka rodуw uzyskanych z mieszaсcуw pszenїyta z pszenperzem. Biuletyn IHiAR 231 /04, Radzikуw2004, pp. 171-179.,

- introducing a part of a virus genome into potato and sugar beet preventing them from Rizomania virus infection, production of pharmaceutics including vaccines by different plants W. Schuchert, S. Benner: Gruene Gentechnik. Max-Planck-Institut fuer Zuechtungsforschung, Koeln 2000.;

- introducing genes that immunize breeding plants against herbicides to be used in their cultures; as a result of disseminating an idea of such cultivations there is some decrease in interest in chemical plant protection agents. That is why, genetically modified cultivations are believed to be more environmentally friendly because they require a smaller amount of herbicides. In the USA herbicide consumption decreased by 65,000 tonnes 'Genetyczna histeria. "Wprost" 2705..

Opportunities for modifying industrial plants are enormous. For instance:

- some work is being carried out to breed rape that would have shorter chains of fatty acids that are more useful in production of detergents By the research team in Max-Planc-Institute.; and

- production of biodegradable plastic by plants (PHB - polyhydroxybutyrate).

3. Threats resulting genetic methods

Genetic technology supports agriculture introducing modified organisms that enjoy properties desired by farmers to production. However, the technology raises some doubts concerning a possibility of a negative influence and susceptibility to losses that both have not been researched sufficiently yet. It is necessary to state that in classical breeding models and while carrying out genetic manipulation procedures organisms that have undesired properties might emerge.

There is still an unanswered question whether positive co-operation of the agricultural and insurance sectors is sufficient enough to introduce new opportunities to cover risks resulting from genetically modified production means in farming.

On the other hand, there is another question that needs answering. How is it possible to use the techniques in question to decrease insurance risk including catastrophic risk of e.g. drought? Many considerations also deal with the question if genetic modifications may not result in phenomena of catastrophic nature as a result of geneticists/breeders' loosing control. Such phenomena are differently defined depending on the context and specialisation of people who attempt to make such definitions. In our considerations "each event that occurs as a result of human actions or due to natural powers or other complex reasons and that brings about some threat to human life, health and belongings or natural environment is deemed a catastrophe, natural disaster or any other serious accident" This definition is to be found in international treaties concerning co-operation and mutual assistance in case of catastrophes, natural disasters and other serious accidents, e.g. "Polish Journal of Laws", No. 04.38.341..

Analysing this definition of threat, it is possible to assume that potential increase in catastrophic threats does not directly depend on environmental conditions. However, it does depend on human actions including genetic manipulations. Figure 3 presents the division of potential risks related to open breeding of genetically modified organisms.

Figure 3. The division of potential risks related to open breeding of genetically modified organisms

Running wild of plants that comes from artificial breeding and their uncontrolled dissemination is a real threat although not probable since numerous field experiences show some low survival rate of such plants outside artificially maintained breeding areas. Insufficiency in competing with wild forms of plants affects all varieties obtained by means of classical and genetic engineering methods. So far, none of all genetically modified cultivations has been confirmed to have any negative influence on wild plants or to kill wild animals. Scientists know a case of adverse effects of modified corn pollen upon some species of a butterfly. Simultaneously, decrease in population of the butterfly in question has not been observed in nature. After ten years of research, it is known that genetically modified organisms are as healthy for humans as traditional products. Market does not offer any food that contains allergens or toxins produced as a result of genetic manipulation. There is no evidence that genes of modified food can influence human DNA or bacteria in human intestines.

Much more serious results may be observed when a part of a genotype is transferred to other organisms, e.g. by plants producing pollen to wild plants. New varieties may emerge and their adverse features might dominate endemic plants in particular ecosystems. Taking such real threat into consideration, practically all countries are introducing regulations that make it possible to carry out thorough examinations of the situation. Such examinations are completed when an opinion on a particular organism is ready. This kind of research is relatively easy in case of one gene modifications including increase in immunity to herbicides, insects or viruses or changes in the chemical constitution of a breeding organism. Much higher difficulty in assessment is encountered while dealing with multi-gene manipulations that contribute to increasing crops, immunity to environmental conditions or ability to fix nitrogen from the air. Figure 4 shows a chart that explains how to authorise the production of experimental field cultivations and commercial use of genetically modified organisms (GMO) in Germany.

All procedures shown above are used in case of each application seeking approval for initiation of any GMO works. They aim at identifying all possible threats that might be posed by a particular organism. Simultaneously, it is necessary to state that in Europe

cultures that are modified by means of genetic engineering methods contrary to those bred by means of classical methods are not very popular.

4. Possible insurability of GMO related risks

Preliminary research into general insurance conditions in case of agricultural cultivations and farm animals allows for reaching a conclusion that insurers in Poland do not pay any attention to potential implications of assessing insurance risk that results from providing GMO producers and breeders with insurance cover. It should be believed that some increasing number of functional genetic manipulations in farming will generate insurers' interest. Possible reactions might include exclusion of insuring GMO as a result of insufficient recognition of all potential losses to be faced while their application by means of increase in rates, policy franchise or deductibles.

Farm bred organism assessment that pays attention to insurability of all risks related to cultivation or breeding should be carried out in two directions based on the following assumptions:

1) All currently bred organisms come from traditional or modem breeding. Such breeding methods aim at improvement of functional features. Features in question may adversely or positively influence assessment of insurance risk (compare Table 2). Analysing insurance conditions of plants, it is possible to state that a majority of improved features of cultivation (e.g. shortening length of stalks, increasing immunity to droughts, shortening a ripening period of cultivations) diminish insurer's risk. However, in case of animals, improvement in breeding features is frequently related to some increase in susceptibility, shortened lifespan and a necessity to apply non-standard methods of breeding. In cases that have been described above insurer's risk would refer to influence of modification on features covered by insurance protection, e.g. some ability to grow and hatch, length of a vegetation period, survival rate.

2) Apart from specific functional features, breeding organisms enjoy reproduction abilities. Uncontrolled processes of genome transfer to other organisms may affect eco-system and human health. Such processes may include uncontrolled growth of modified cultures of wild plant varieties that crossbreed without any control or their influence on other wild populations.

At present, risk of transferring GMO genes to wild plants resulting in emergence of the so-called super-weeds is very low. However, if this threat emerged, insurance companies could face costly compensation claims related to third party liability of breeders/producers of the primary materials or entities that utilise products obtained from genetically modified organisms.

Considering the former case in all insurance conditions known to the author, there is no differentiation between organisms that are bred to obtain a particular feature. It may be stated intuitively that insurers benefit from modifications being introduced including immunity to diseases, shortened length and increased stiffness of stalks. However, they may also have to face an increased number of claims in case of e.g. cows with an implanted lactation gene that shortens lifespan and weakens organism. Analysing the latter case, it should be stated that in commercial insurance there is no coverage of any risks related to genetically modified organisms and their potential impact on the eco-system or a human being.

Conclusions

Insurers undoubtedly have to face the basic difficulty related to enigmatic nature of threats resulting from GMO. Rapid development of genetic techniques in recent years allows for correct building of potential deterministic models that are history based. However, probabilistic models are based on the stochastic methodology (random, incidental) cover thousands hypothetical and scientifically possible events which are difficult to identify, especially in case of multi-gene manipulations.

In spite of the fact that modelling is an indispensable insurance and reinsurance process and probabilistic models accompany insurers and reinsures work, for the time being there are no positive signals of covering GMO related threats as a result of conclusions generated by the models in question.

Seriously treating global GMO related threats that are possible and still believed to be insufficiently researched - in the author's opinion - insurance systems should be based on the system of insurance pool that would group commercial insurers and reinsurers supported by participation of national or trans-national institutions e. g. the European Union. While gradually recognising all potential threats, different scopes connected with territories or amounts should be taken into consideration. The scope, price, franchise or limits should be elements of consensus between natural caution of insurers and a necessity for helping potential victims of GMO related disasters.

Literature

Ortloff W., Approaches to a changing risk profile: The agricultural sector in Europe, Swiss Reinsurance Company, Zurich 1998,

Schuchert W., Benner S., Gruene Gentechnik, Max-Planck- Institut fuer Zuechtungsforschung, Koeln 2000.

Wild O. S.,Agricultural insurance in transition, Swiss Reinsurance Company, Zurich 1997.

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