Insurance Market ‘Healthy’ for Buyers of Product Recall and Contamination

The specialist market for insurance covering product recall and product contamination is resilient and stable, says Ian Harrison in a new report on the market from Lockton, the world's largest insurance broker.

The Toyota recalls have intensified the spotlight on this insurance sector, says Lockton's Ian Harrison, in the report, "Supply and Demand Growing for Product Recall Insurance."

"The interest by buyers in this insurance protection has steadily increased with the recent Toyota recalls sparking even more discussion," Harrison says. "We have seen a steady growth in both supply of insurance capacity and expertise in this area, so buyers have attractive options."

Harrison adds, "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 specialisations. Harrison says 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 programmes of $200m plus to be placed for catastrophic exposures if required.

The Lockton report is available free at http://bit.ly/9DlUMk or at www.lockton.com