Marketplace Realities 2018: Product recall

November 6, 2017

    The one thing

    Watch for new hybrid recall and cyber solutions that will address cyber breaches, which can create product recall risk as consumer electronics, automobiles, implantable devices and other products are targeted by hackers.
  • Recall renewals continue to see flat or reduced rates due to increased competition.
  • The marketplace has seen a significant uptick in first-time buyers over the last 12 months. Global annual recall premiums have climbed well in excess of $400 million.
  • Carriers are focusing on limit management, with many capping their primary limits at $5 million
  • Quota sharing has become more prevalent in the U.S. and has helped maintain stable pricing conditions.
  • There are no signs of consolidation after Liberty’s and Fairfax’s respective acquisitions of Ironshore and AWAC.
  • There have been very few new coverage developments on the food & beverage side in 2017.
  • Price prediction

    -5% to +5%
  • Insurance triggers continue to broaden in the non-food sectors, including some manufacturing errors & omissions features.
  • Insurers are starting to work with the broking community in an effort to gather information and develop data analytics.