Insurance Marketplace Realities 2024 Spring Update – Product recall

Rate predictions: Product recall

	Trend	Range
Product recall		+5% to +10%

The key takeaway from this is due to the uptick of recalls — increasing over 115% since 2018. Renewals are being handled on a case-by-case basis from the market with a heavy emphasis on product scale, claim history and frequency as well as insured/carrier relationship.

Large losses sustained in the market include:

• $105 million automotive component recall
• $150 million food contamination recall
• $ 45 million packaging defect recall
• $150 million baby formula recall
• $ 20 million medical device unit recall

Due to the current state of the 2024 product recall market, it is important to obtain all submissions at least 60 days prior to the renewal. This allows us to leverage risk review and competition with incumbent markets.

Disclaimer

Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Contacts

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Kevin Velan

Director National Product Recall Team

email Email phone +1 312 288 7140

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Shawn McCleary

Associate Director, National Product Recall Team

email Email phone + 1 312 288 7351

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Jonathan McMahon

Senior Broker, National Product Recall Team

email Email phone + 1 716 471 3195

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