| Trend | Range | |
|---|---|---|
| Product recall |  |
+5% to +10% |
Key takeaway: The product recall market has seen an easing of rate to approximately 5% on flat revenue/exposure renewals over the last two years. The market has sustained several very large +$100 million losses in both the food and non-food space. We expect that, going into the 2024 and 2025 renewal cycles, the market will be looking to increase rate on more difficult risks that do not have longstanding relationships with their incumbent carriers.
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).