John Naughton, Manager - Product Recall, Berkley Specialty London When you hear about product recalls, it’s easy to think of them as just another headline. But if you dig a little deeper, you start to see just how much they reveal about the world we live in. They’re not just about consumer safety—they’re about the complex, and sometimes fragile, connections between manufacturers, distributors,…, consumer trust, once lost, can take years to rebuild., For companies navigating this landscape, having the right partners makes all the difference. At Berkley Specialty London, we’ve spent nearly a decade helping businesses face these specific challenges head-on. From our perspective, the past year tells us a lot about the growing pressures on industries and where we’re heading: , The numbers behind the trend, Across much of the western world, recalls are on the rise. In the US, the number of recall incidents has steadily risen year on year since the Covid pandemic and the number of food, drink and cosmetics recalls reached a 4 year high in 2024 with nearly 2,000 recalls reported by the Opens in new tab FDA . In Europe, the number of EU Food RASFF notifications increased 15% in 2024, reaching an 8…, The industries feeling the heat, Food & Beverage leads the pack, comprising nearly 60% of all recalls. Mislabelling, contamination, and health risks dominate this sector’s issues. Take the recent Salmonella outbreak in cucumbers from Agrotato, S.A. de C.V., which Opens in new tab affected 68 people across 19 states in the U.S., leading to hospitalizations and cascading recalls by other companies. This one event ended up…, The hidden cost of Recalls for insurers, These examples highlight a critical issue: many companies simply don’t have the financial resources to cover the aggregated effects of a recall. That raises a bigger question for insurers. , If the aggregated losses cannot be recovered from the company causing the loss, who picks up the tab?, The chances are that the losses will be attributed to insurers and there is little chance that insurers will get their money back from the company that caused the loss in the first place. This leaves insurers as the primary lifeline, but not all insurers have the experience, or capacity, to navigate such complex claims. At Berkley Specialty London, we’ve built a dedicated team that focuses…, The role of regulators, While recalls address problems after the fact, regulators are focusing on prevention. In 2024, key regulatory updates have aimed to minimize risks: In the, Food & Beverage, sector, the FDA has enforced stricter allergen labeling and Salmonella controls, while the USDA has introduced new standards for poultry safety. In, Automotive, , updated IATF guidelines and stricter emissions standards are shaping the future of electric vehicles and recycling processes. These evolving regulations are a reminder that staying compliant is as much about foresight as it is about adaptation. , Looking ahead to 2025, The reality is, as long as production and supply chain issues persist, so too will recalls. Consumers, too, are becoming more vigilant, using online tools to stay informed about affected products. 2025 will bring its own challenges, from potentially tighter food safety rules to regulatory shifts. Increased recall cost related to tariffs on ingredients/components, improved pathogen testing and…
John Naughton explores how the complexities of product recalls and what’s driving their growth in today’s world.
Type: Blog post
