Allianz Global Corporate & Specialty (AGCS) is acquiring the renewal portfolio of Liberty Mutual Insurance’s s US Product Recall and Special Contingency business, written through Liberty International Underwriters (LIU) US.
The firm said demand for product recall insurance has been increasing and specialized insurance is designed to help manage the costs of a recall such as testing, consultant and/or advisor expenses, for advertising and implementing it as well as for repairing or replacing products.
According to AGCS, the average cost of a significant incident is in excess of $12m with the sum for large events far exceeding this total.
AGCS offers its clients crisis management assistance services through its partner company red24, which also supported Liberty Mutual’s clients.
Christof Bentele, head of Global Crisis Management at AGCS, said it will offer its underwriting expertise to LIU clientele to support their coverage needs.
“Companies that choose to renew policies with Allianz will benefit not only from an overall smooth transition, including engagement of the same crisis management partners, but also from Allianz’s unparalleled global network and talent both in underwriting and claims handling.
“For Allianz, this opportunity helps further position us as a leading product recall carrier and supports our strategy of expanding our customer base in the US."