Insurance Marketplace Realities 2023 Spring Update – Product recall

Rate predictions: Product recall

	Trend	Range
Product recall		Flat to +5%

Large losses continue

• Multiple eye-drop manufacturers have recalled large batches of drops due to contamination causing a drug-resistant infection. The contamination has, thus far, caused three deaths, and more than 12 users have lost their vision.
• Infant formula contamination issues continue: Perrigo Company plc is recalling certain lots of a Gerber infant formula because of possible Cronobacter sakazakii contamination.
• A popular consumer goods manufacturer is recalling 1.9 million coolers/cooler backpacks. The U.S. Consumer Product Safety Commission has deemed these backpacks and coolers dangerous because these coolers and cooler cases have magnets that can detach from the product. Since the closures used on these recalled products are faulty, the magnet can easily detach itself inside the cooler, posing a risk of ingestion.

Producers and client teams should prepare their recall clients for a more detailed and extensive recall renewal, as the market will have more pressure to satisfy reinsurance about the diligence paid to the underwriting of their respective books.

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

Broker, National Product Recall Team

email Email

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