Allianz Global Corporate & Specialty acquires renewal portfolio of Product Recall Business from Liberty Mutual in the U.S.

Press release | January 31, 2018 | New York

Allianz Group’s specialist corporate insurer Allianz Global Corporate & Specialty® (AGCS) announced today that it is acquiring the renewal portfolio of Liberty Mutual Insurance’s s United States Product Recall and Special Contingency business, written through Liberty International Underwriters (LIU) U.S., with effect from Jan.30, 2018. AGCS began offering product recall insurance in North America in 2016 and is committed to further expanding its business in this segment, with a focus on larger corporate clients.

"As LIU recently announced an exit from the Crisis Management space, we are pleased to have the opportunity to offer our underwriting expertise to their former clientele in an effort to continuously  support their coverage needs,” stated Christof Bentele, Head of Global Crisis Management, AGCS. “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."

Demand for product recall insurance has been increasing over the past decade and specialized product recall insurance is designed to help manage the considerable costs of a recall such as testing, consultant and/or advisor expenses, costs for advertising and implementing the recall as well as costs for repairing or replacing products. Beyond covering financial losses following a recall incident, AGCS also offers its clients crisis management assistance services globally on a 24/7 basis through its partner company red24, which also supported Liberty Mutual’s clients.

According to AGCS’s most recent report Product Recall: Managing The Impact of the New Risk Landscape, the average cost of a significant1 incident is in excess of $12 million, with the costs of largest events far exceeding this total. Record levels of recall incidents - both in size and cost - are a result of several factors, including tougher regulation and harsher penalties, the rise of large multi-national corporations and complex global supply chains, growing consumer awareness, economic pressures in R&D and production as well as the growth of social media. 

Launched in 2016, the AGCS Crisis Management division in North America assists larger companies  in preventing, preparing for and recovering from crisis incidents; it resides within AGCS’s global Liability line of business and provides insurance and service solutions pertaining to 

  • product recall and contamination
  • terrorism and political violence 
  • hostile environments.
1. Significant event refers to product recall claims equal to or greater than €5m.
AGCS USA

Allianz Global Corporate & Specialty (AGCS) is a leading global corporate insurance carrier and a key business unit of Allianz Group. AGCS provides risk consultancy, Property-Casualty insurance solutions and alternative risk transfer for a wide spectrum of commercial, corporate and specialty risks across 12 dedicated lines of business.

Our customers are as diverse as business can be, ranging from Fortune Global 500 companies to small businesses, and private individuals. Among them are the world’s largest consumer brands, tech companies and the global aviation and shipping industry, but also wineries, satellite operators or Hollywood film actors. They all look to AGCS for smart answers to their largest and most complex risks in a dynamic, multinational business environment and trust us to deliver an outstanding claims experience.

We constantly strive to deliver the best for our customers through our global team of around 4,400 employees from over 70 nationalities in 34 countries worldwide. As the one of the largest Property-Casualty units of Allianz Group, we are backed by strong and stable financial strength ratings and a global network in over 200 countries and territories. In 2018, AGCS generated a total of €8.2 billion gross premium worldwide.

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With the Allianz network AGCS provides services in over 200 countries and territories.