Allianz Global Corporate & Specialty (AGCS) is purchasing the renewal portfolio of product recall business from Liberty Mutual in the US.
Financial terms of the acquisition were not disclosed.
AGCS is the Allianz Group’s carrier for corporate and specialty insurance business.
Liberty Mutual Insurance’s s US product recall and special contingency business, written via Liberty International Underwriters (LIU) U.S.
AGCS started providing product recall insurance in North America in 2016. The company plans to further expand its business in the segment, with a focus on larger corporate clients.
AGCS global crisis management head Christof Bentele said: “As LIU recently announced an exit from the Crisis Management space, we are pleased to have the opportunity to offer our underwriting expertise to their former clientele in an effort to continuously support their coverage needs.
“Companies that choose to renew policies with Allianz will benefit not only from an overall smooth transition, including engagement of the same crisis management partners, but also from Allianz’s unparalleled global network and talent both in underwriting and claims handling. For Allianz, this opportunity helps further position us as a leading product recall carrier and supports our strategy of expanding our customer base in the US.”
AGCS stated that demand for product recall insurance has been increasing in the recent past, especially in the last decade and specialized product recall insurance is designed to help in managing the costs associated with recall including repairing or replacing products.
AGCS offers crisis management assistance services to its clients globally. This is a 24/7 service and is offered by its partners company red24, which is also supported by Liberty Mutual’s clients.
In another press release, Allianz proposed several changes to its claims operation as the number of claims the company receives continues to fall and customer claims journeys become increasingly digitalised.
The company proposes to close its Manchester Claims office and consolidate Allianz’s Bodily Injury claims at Milton Keynes for commercial lines and Bristol for personal lines.
LV= and Allianz have outlined the plans to transfer their respective personal and commercial portfolios as part of their partnership, originally announced on 4 August 2020.
Allianz’s personal home and motor portfolios will transfer to LV=GI, the joint venture 49% owned by Allianz. The commercial portfolios of LV= will transfer to Allianz.