Product recall a challenging line for captives, but interest increases

• Product recall is split between food & beverage, automotive suppliers and pharmaceuticals
• In Germany in 2019 3.6m new cars were registered, while close to 3.2m cars were subject to recall
• Electric vehicle trend expected to increase demand for product recall insurance
• AstraZeneca’s long-term captive utilisation protected it from pricing surge during pandemic

The current utilisation of captives in the product recall market is infrequent, but the interest in putting the coverage in captives is increasing, particularly in the automotive space.

One of the main reasons for the lack of captives writing product recall in the UK is the current competitiveness of the domestic recall market, which usually does not inspire many new captive formations.