Insurance Marketplace Realities 2025 Spring Update – Product Recall

Rate predictions: Product Recall

	Trend	Range
Product recall		Flat to +5%

U.S. marketplace update

Recall and contamination throughput:

• Long-standing relationship and good loss experience: Flat to +5%
• Marginal to poor loss experience: +10% and higher

Pricing remains stable with the occasional reduction provided by the incumbent to avoid marketing. Incumbents have been shown to be more aggressive to longstanding and loss-free accounts.

London marketplace update

Recall and contamination throughput:

• Long-standing relationship and good loss experience: +5% to +10%
• Marginal to poor loss experience: +10% and higher

The London market continues to be a harder market compared to the domestic U.S. market.

Market capacity update

• S. capacity has continued to increase over the past five years.
• New MGAs have been introduced to stabilize capacity in the recall market.
• New markets include:
  • Upland specialty
  • Euclid

Recent recall loss update

• According to Segdwick’s U.S. recall index report, 2,454 product recalls were recorded in the automotive, consumer product, food and drink, medical device, and pharmaceutical industries in 2024. If the pace of recalls continues, the figure will reach a six-year high.
• FDA & CPSC have confirmed recalls have increased over 115% since 2018,
• Recent large losses in the market include:
  • Onion contamination closes restaurants
  • Deli meat recall expands to over 7 million pounds
  • Faulty component leads to 7 million vehicles being recalled
  • 1 million electric ranges recalled due to accidental knob activation

Coverage update

To read more, download the full report below.

Disclaimer

WTW hopes you found the general information provided here 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, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Contacts

---

Kevin Velan

Director, National Product Recall Team

email Email phone +1 312 288 7140

---

Shawn McCleary

Associate Director, National Product Recall Team

email Email phone + 1 312 288 7351

---

Jonathan McMahon

Senior Broker, National Product Recall Team

email Email phone + 1 716 471 3195

---