XL Group’s global insurance segment has rolled out its latest offering ‘Automotive Recall Plus’, which has been designed to meet the needs of the automotive supplier industry in Germany, Austria and Switzerland.
The company said that the new policy offers additional liability coverage for the warranty agreements between automobile manufacturers and suppliers.
In order to enhance efficiency and reduce costs, automotive manufacturers repeatedly use the same component for numerous platforms; however, it is not risk free.
If one component, or a group of components, proves to be defective, a compulsory product recall could result into serious economic consequences.
The Automotive Recall Plus helps manufacturers to deal with such risks with its professional, proven quality control and risk management.
XL Group international casualty senior underwriter Bernd Oppermann said, "Until now, in the case of a product recall, neither production costs for faulty products, nor the automotive manufacturer’s internal costs were insured."
XL Group country manager Germany Michael Harth commented, "Automotive Recall Plus answers a genuine client need, and complements the attractive product portfolio which makes us one of Germany’s leading commercial insurers."