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Guy Malyon London Product Liability and Product Recall Insurance A Market Perspective 9th November 2005.

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Presentation on theme: "Guy Malyon London Product Liability and Product Recall Insurance A Market Perspective 9th November 2005."— Presentation transcript:

1 Guy Malyon London Product Liability and Product Recall Insurance A Market Perspective 9th November 2005

2 2 Marsh State of the Liability Insurance Market Litigation clearly on the increase throughout Europe – Class action disease is spreading – Increased EU regulation – Accession countries realising the effects of EU membership – Punitive damages appearing in the UK Up until Katrina/Rita/Wilma the market was softening – Now it is flat Re-emergence of European insurers has increased Liability capacity – Gerling and Axa for example Product Recall capacity is also increasing

3 3 Marsh Market Reaction to General Product Safety Regulations Overview Product Recall insurance is not compulsory Enforcement agency powers have increased Demand will outweigh supply Risk management in UK is sophisticated in general terms Market Place Three main products: Accidental/Malicious/Extortion Limited markets at primary level Favourable loss ratios in recent years – Sudan I More capacity and cheaper premiums

4 4 Marsh Liability Insurance Across Europe A comparison with the UK Insurance Comparison Wider cover: financial loss, recall, rip & tear Lower deductibles Cheaper premiums Claims made Vs Occurrence Full value programmes Legal Comparison Codified legal systems Average awards Limits purchased Large claims in Europe

5 5 Marsh Limit of Liability Survey companies surveyed in 43 countries across 6 continents Average global limit purchased - $58 million Average European limit purchased - $60 million Companies that experienced a loss buy three times the limit of their peers Utilities, Chemicals, Pharmaceuticals, Transportation buy the highest limits Governmental, Retail and Consumer Brands buy the lowest limits On average Companies with North American exposure buy three times the limit of those without Eastern Europe buy the least amount of cover

6 6 Marsh The information contained in this presentation provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Insureds should consult their insurance and legal advisors regarding specific coverage issues. This document or any portion of the information it contains may not be copied or reproduced in any form without the permission of Marsh Ltd, except that clients of Marsh Ltd need not obtain such permission when using this report for their internal purposes. © Copyright Marsh Ltd. All rights reserved. Marsh Ltd is authorised and regulated by the Financial Services Authority.


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