Insurers beef up food recall offering
Specialist liability insurance provider Delta Insurance NZ has responded to the growing risk of food recalls in New Zealand with a more extensive offering for food manufacturers. Delta, New Zealand’s largest kiwi-owned insurer, has released a comprehensive White Paper on the subject of food safety risk in the food manufacturing sector, following up on the company’s introduction of a niche insurance offering for food manufacturers last year. The company’s Chief Executive Officer Craig Kirk says Delta designed the new insurance and prepared the White Paper to fill a perceived need in the sector. “We had seen an alarming increase in the risks for food producers, most glaringly reflected in a leap in the number of food recalls per capita out of this country which were significantly higher than in Australia. “At the same time, the world, including New Zealand, is seeing an increase in the prevalence of allergens in food, and those susceptible to them, increasing the number of food safety issues happening.” The insurance industry had not kept pace with these developments, Kirk adds. “We could also see that existing general liability insurance in the market fell well short of covering the potential risks and damage to companies that could arise from a major food issue.” Kirk says food manufacturing is a vital part of New Zealand’s economy, representing almost 4% of the country’s total GDP but equating to a staggering 71% of manufactured exports. “It’s currently worth around $7 billion, with that figure projected to quadruple to almost $30 billion by 2025. The damage in terms of cost and reputation from a significant food crisis or major issue doesn’t just affect the company concerned; New Zealand’s reputation as a high-quality food producer also suffers.” Kirk says recent alarming instances of food issues in New Zealand included the possible […]