Product recall and defective product losses for insurers have been growing steadily in recent years, costing over $2 billion in insured liability losses over the last five years, according to a new report from Allianz Global & Corporate Specialty (AGCS).
Product recalls most frequently affected the automotive industry, with the food and beverage sector coming in second, followed by IT/electronics, according to data analyzed by AGCS. The $2 billion in claims made defective products the largest driver of liability losses, according to the insurer.
“Product recalls have risen steadily in the past decade. We are seeing record levels of recall activity in size and cost today,” said Christof Bentele, head of global crisis management at AGCS. “Tougher regulation and harsher penalties, the rise of large multi-national corporations and complex global supply chains, growing consumer awareness, impact of economic pressures in research and development (R&D) as well as production and even growth of social media are just some of the contributing factors behind this.”
Read more at https://www.advisenltd.com/2017/12/06/potentially-risk-laden-situation-allianz-analyzes-product-recall-claims/
Erin Ayers, ‘Potentially the most risk-laden situation:’ Allianz analyzes product recall claims (December 6, 2017). ADVISEN FPN.
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