| 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:
Coverage update
- Maximum indemnity periods of 36 months have been negotiated on a case-by-case basis.
- Certain markets are offering new coverages for mold, rancidity and infestations on a sub-limited basis.
- Forensic accountant services are being added on all renewals
- Certain carriers dipping their toes into broadening coverage to include for quality issues — this removes the need of the risk of BI or PD
- Due to large losses in the product recall market, carriers will continue to push increases in rate on all business.
- The growth in market capacity will be a valuable instrument while negotiating lower rate increases on incumbent renewal placements.
Clients involved in foreign imports or global commodity sourcing should reevaluate their recall coverage limits, as shifting tariffs, rising recall costs and heightened regulatory scrutiny have amplified the financial impact of a product issues
To read more, download the full report below.
Download
| Title | File Type | File Size |
|---|---|---|
| Insurance Marketplace Realities 2025 Spring UpdatePDF | 12.3MB |
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).