The global insurance segment of XL Group plc announced the launch of its new product – Automotive Recall Plus – which it described as an “innovative product designed for the automotive supplier industry. It provides additional liability coverage for the warranty agreements between automobile manufacturers and suppliers. This makes Automotive Recall Plus an attractive, value-added option for automotive suppliers in Germany, Austria and Switzerland.”
XL explained that the automotive supplier industry “plays a pivotal role in Germany’s economy. Just in the first six months of 2013, 900 mid-sized suppliers generated sales of over €40 billion [app. $60 billion] – roughly 19 percent of the automotive industry’s entire turnover in this period. Manufacturers frequently use the same part for numerous platforms. Although this obviously heightens efficiency and reduces costs, it also presents some risks. In the event that one component, or a group of components, is defective, a compulsory product recall could result into serious economic consequences.
“Such product recalls challenge not only suppliers, but also insurers, and they demand innovative solutions. XL Group’s automotive experts have responded to this need by developing Automotive Recall Plus.”
Bernd Oppermann, Senior Underwriter in International Casualty at XL Group, said: “Until now, in the case of a product recall, neither production costs for faulty products, nor the automotive manufacturer’s internal costs were insured. It was expensive and time-consuming for suppliers to produce replacement parts out of pocket. That is why we are delighted to launch this new solution in Germany, Austria, and Switzerland.”
XL said the “new product is designed for automotive suppliers with professional, proven quality control and risk management. The level of the premium primarily depends on the risks covered.”
Oppermann explained: “Because we can calculate the risks individually, we are able to offer tailor-made premiums to suit our clients’ needs. We are offering this product exclusively to new or existing clients with product recall policies, as well as either commercial or product liability policies.”
Michael Harth, Country Manager of XL Group in Germany, added: “The automotive supplier industry is a pillar of the German economy, and we at XL Group in Germany are proud to make another innovative product available to this industry. Automotive Recall Plus answers a genuine client need, and complements the attractive product portfolio which makes us one of Germany’s leading commercial insurers.”
Source: XL Group