The specialist market for insurance covering product recall and product contamination is resilient and stable, according to Ian Harrison, an expert in the field, in a new report – “Supply and Demand Growing for Product Recall Insurance – from Lockton.
The Toyota recalls have intensified the spotlight on this insurance sector, Harrison indicated. “The interest by buyers in this insurance protection has steadily increased with the recent Toyota recalls sparking even more discussion.
“We have seen a steady growth in both supply of insurance capacity and expertise in this area, so buyers have attractive options.”
He added that the “increase in both supply and demand for recall insurance is a very good sign of a healthy market.”
The Lockton report notes that there are eight lead insurance markets, primarily based in London, that offer a variety of policy wordings, response consultants and different industry specializations.
Harrison pointed out that this provides a level of choice and competition not seen before for primary product recall and contamination risks. On an excess basis, capacity remains available allowing programs of $200 million plus to be placed for catastrophic exposures if required.
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