By Business Wire, October 15, 2013, 10:05:00 AM EDT
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
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
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
| 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.
Source: American International Group, Inc.