Worse-than-expected product recall losses in 2015 and 2016 could lead to rate hikes in 2017, according to a report from Aon. These losses, particularly when combined with high general insurance losses in 2018, may make reinsurance negotiations for specialty insurers difficult, the report also noted. The growth of technology and social media is making more consumers aware when companies issue recalls, leading to a higher number of claims being made.
Worse-than-expected product recall losses in 2015 and 2016 could lead to rate hikes in 2018, according to a report from Aon. These losses, particularly when combined with high general insurance losses in 2017, may make reinsurance negotiations for specialty insurers difficult, the report also noted. The growth of technology and social media is making more consumers aware when companies issue recalls, leading to a higher number of claims being made.