‘Potentially the Most Risk-Laden Situation:’ Allianz Analyzes Product Recall Claims

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.

Cyber Risk Carries Over Into Other Liability Lines: Allianz Report

Within the broader insurance world of liability losses, cyber risk stands to become a significant worry in other lines of business including product liability and recall risk, according to a new global claims review from Allianz Global & Corporate Specialty (AGCS).

“Cyber claims are becoming more relevant. This is a huge area of growth for insurers,” said Peter Oenning, global head of claims liability for AGCS.

Read more at http://www.advisenltd.com/2017/04/10/cyber-risk-carries-over-into-other-liability-lines/

Erin Ayers, Cyber risk carries over into other liability lines: Allianz report (April 10, 2017), available with subscription at Advisen Cyber Front Page News.