Press release from Business Wire
AIG Launches Service to Estimate Cost of Product Recalls; Raises Contaminated Product Insurance Limits to $35 Million
Tuesday, October 15, 2013
AIG Launches Service to Estimate Cost of Product Recalls; Raises Contaminated Product Insurance Limits to $35 Million10:05 EDT Tuesday, October 15, 2013
NEW YORK (Business Wire) -- In response to the growing financial impact and frequency of product recalls for food and beverage manufacturers, distributors and importers in the U.S. and Europe, American International Group (AIG) today launched NOVI, a web-based service to help companies estimate the cost of recall incidents, and expanded its available accidental contamination coverage limits to $35 million.
On average, 30 class I and II product recalls occur every week in the food and beverage industry in the United States, and another 22 equivalent recalls are reported in Europe, according to AIG analysis of data from the U.S. Department of Agriculture (USDA) and the European Union Rapid Alert System for Food and Feed (RASFF).
Expenses resulting from product contamination requiring a recall can include replacement and destruction costs and lost profit from plant shutdowns, government intervention, and brand damage.
AIG's NOVI is a first-of-its-kind web-based service that provides food and beverage companies an estimate of their probable maximum recall loss in the event of an accidental contamination. The estimate uses more than 80 data points and a proprietary methodology based on AIG's more than 25 years of experience providing contaminated product insurance, extensive analysis of thousands of recall incidents, and input from a leading food safety consultant, NSF International.
“NOVI helps food and beverage manufacturers make more informed decisions about how to manage their risk,” said Nicky Alexandru, VP for Crisis Management, Global Casualty, AIG Property Casualty. “These companies are generally aware of the frequency of product recalls. However, they are unsure of the potential magnitude of financial impact from a recall event.”
This free, confidential service is available in six languages to qualified food and beverage manufacturers in 11 countries: United States, United Kingdom, Germany, Austria, Belgium, Canada, Denmark, Italy, Netherlands, Spain, and Switzerland. It can be accessed in the U.S. here: www.aig.com/us/novi.
AIG was the first company to provide Contaminated Product Insurance (CPI) in 1986. Today, AIG remains the market leader, providing outstanding product recall underwriting expertise, a dedicated product recall claims team, and exclusive relationships with best-in-class crisis management consulting services which are standard in an AIG CPI insurance policy.
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig |Twitter: @AIG_LatestNews | LinkedIn: http://www.linkedin.com/company/aig |
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all jurisdictions, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.
Matt Gallagher, 212-458-3247