XL unveils automotive policy
XL Group has launched a stand-alone insurance solution designed for suppliers in the automotive industry.
According to XL, the automotive parts recall policy delivers a choice of coverage to respond to the increased exposures and liabilities related to automotive recalls.
The product offers a choice of specific triggers, which include product safety issues, product guarantee issues and government ordered recalls.
XL said that the number of automotive recalls has increased significantly around the world.
“In the US alone, the National Highway Traffic Safety Administration reported that in 2014, automotive product recalls reached a record high of close to 64 million vehicles, more than doubling the previous record set in 2004,” said XL.
Mark Hutton, UK product recall underwriting manager of XL Group, said: “The rise of global automotive recalls has put vehicle manufacturers under pressure and they are increasingly looking to push the liability down the supply chain. The additional exposure to automotive recalls is creating a demand for a stand-alone product recall policy that addresses the associated financial risk and contractual requirements on suppliers.”
“We are introducing this product to tackle the growing risks faced by this industry at a time when there remains a lack of insurance capacity dedicated to respond to the exposures. We anticipate demand to grow as we seek to provide the cover that the automotive parts industry increasingly needs.”
