Food recall rises worry insurers
A 37% rise in the number of food product recalls in Australia may put pressure on product recall insurance premiums.
Figures from crisis management consultants Luttrell & Associates reveal 26 instances of food product recalls in the first half of this year, compared to 19 in the second half of last year.
The recalls affected significant market players such as Heinz Australia and Cadbury Australia, as well as major retailers including Woolworths.
“Product recall can affect any business, large or small, and the costs can run into millions of dollars,” Luttrell & Associates MD Robert Luttrell said. He called for a greater focus on risk including the purchase of adequate insurance cover.
Liberty International Underwriters Senior VP Casualty Asia Pacific Noel MacCarthy told insuranceNEWS.com.au that if a company can demonstrate it has robust and accountable risk management in place, “it will impact the type of insurance solution we offer and the associated pricing”.
Figures from crisis management consultants Luttrell & Associates reveal 26 instances of food product recalls in the first half of this year, compared to 19 in the second half of last year.
The recalls affected significant market players such as Heinz Australia and Cadbury Australia, as well as major retailers including Woolworths.
“Product recall can affect any business, large or small, and the costs can run into millions of dollars,” Luttrell & Associates MD Robert Luttrell said. He called for a greater focus on risk including the purchase of adequate insurance cover.
Liberty International Underwriters Senior VP Casualty Asia Pacific Noel MacCarthy told insuranceNEWS.com.au that if a company can demonstrate it has robust and accountable risk management in place, “it will impact the type of insurance solution we offer and the associated pricing”.