HDInsights May 2025 Ed.15 HDI Asia Pacific and Middle East Newsletter
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May 2025 | edition 15 4 7 9 11 13 16 20 Foreword - Stefan Feldmann HDI Global full-year results hit milestone Watch This Space! Renewables insurance: Supporting MENA’s energy transition HDI Global Launches Climate Consulting Service to Help Businesses Manage Climate Risks HDInsights LIVE: Reputation, Resilience & Recall Revealed - insurance industry’s Global 100 for 2025 Contents
But it hasn’t all been about weathering storms. We’ve also had the pleasure of connecting with our business partners in more festive and forward-looking ways. HDI Events In Hong Kong, our team joined the Spring Dinner of CIB (The Hong Kong Confederation of Insurance Brokers), while in Singapore, we marked the year with a local market celebration. Meanwhile, our colleagues in Western Australia embraced the year with a “Secret Garden” themed event that welcomed over 100 brokers. Down in Victoria, F1 fever took hold, and the Melbourne team hosted brokers for a thrilling Friday practice session ahead of the Australian Grand Prix. In Queensland, 2025 launched with a high-energy marketing event: “Thrive in 25”. Of course, our dedication to people doesn’t end with clients and brokers - it extends to our employees and their families. This year, we proudly celebrated International Women’s Day across our offices and introduced an Employee Appreciation Day as a heartfelt thank-you. In mid-March, we gathered in our warm and welcoming company kitchen for a shared lunch featuring sandwiches, pizza, salads, and cake. It was a relaxed and joyful occasion. A busy start to the year at HDI Global 2025 kicked off with energy and intensity for all of us at HDI Global, especially as storms and flooding swept through parts of Queensland and New South Wales. Cyclone Alfred, though eventually downgraded to a tropical low, left a trail of disruption in its wake - what the media aptly dubbed the “ex-cyclone” still had a major impact across Eastern Australia. Providing exceptional service lies at the core of what we do, and in times like these, that means making the claims process as smooth as possible. At HDI Global we’re committed to cultivating genuine partnerships and showing that we are, indeed, an insurer with a human touch. Whilst that may sound like standard industry rhetoric, we back those words with real actions and tangible outcomes. Stefan Feldmann, Head of HDI Global Asia-Pacific Managing Director HDI Global SE, Australia Managing Director HDI Global Specialty SE, Australia and New Zealand Foreword HDInsights edition 15 | page 4 HDI Australia team at the 2025 ‘Thrive in 25’ Staff Kickoff event International Women's Day Perth team.
Helen Kong and Stuart Routledge Willem van Wyk Senior Executive Officer HDI Global Dubai HDI Culture With growth often comes pressure, but at HDI, we remain rooted in our values. We continue to embrace a startup mindset where autonomy and accountability thrive. This culture of empowerment is something we’ve proudly carried over from our headquarters in Germany. “Our employees work with a very high degree of autonomy. We value freedom, trust, and responsibility above all else. Ultimately, what matters is whether the teams have achieved their goals.” That philosophy remains a guiding force, even as our footprint expands. Alongside this internal growth, we’ve also celebrated external recognition. At the Cyber Insurance Awards Europe ceremony in London on 5 February, HDI Global’s Cyber unit earned three prestigious nominations. HDInsight Edition 10 - page 3 Foreword HDInsights edition 15 | page 5 The jury awarded a “Highly Commended” status in the Cyber Insurance Carrier of the Year category - confirming our team’s exceptional expertise and high-quality standards. We were also shortlisted for Cyber Security Solution Provider of the Year and Cyber Insurance Awareness Initiative of the Year. Stuart Routledge of the Sydney Marine Underwriting Team and Helen Kong of the National Marine Claims Team have also been recognised by industry peers at the annual SMDG (Sydney Marine Discussion Group) awards for “Underwriter of the Year” and “Claims Manager of the Year”. Recognising and rewarding our people is essential to maintaining a refreshingly different culture. Simple gestures can go a long way in fostering trust, connection, and community within an organisation. As we reflect on the momentum of the past months, I’m pleased to share that our team has grown to over 240 employees across Australia - with 25 new team members joining us in Australia alone in the past quarter. Last month marked an exciting milestone with the launch of our Casualty business. We’re thrilled to welcome Nitin Thomas to lead this area, a well-known figure in the DIFC, the region’s premier financial hub connecting the Middle East, Africa, and South Asia. The Middle East remains a dynamic market, with continued investment in infrastructure, energy, and renewables. Global brokers are expanding, with several securing licenses in Saudi Arabia - clear signs of growing confidence in the region. Our team had a strong presence at the Dubai World Insurance Conference, a productive event, with over 30 meetings held with brokers and ceddents. A standout moment was our meeting with Hannover Re in Bahrain, where we had excellent discussions and look forward to ongoing collaboration in support of the wider Talanx Group. “The recent earthquakes in Thailand and Myanmar have deeply affected many - our thoughts are with those impacted. These events are a stark reminder of the growing Nat Cat exposures in Southeast Asia. I’m proud of how our underwriting teams have responded: with discipline, speed, and resilience. At the same time, we’re making bold strides - from launching our new Accident & Health line to supporting the region’s energy transition with our industrial risk expertise. And one of my personal highlights this quarter? Watching our colleagues bring #WeAreOne to life during the filming of our global collaboration project - full of laughter, creativity and some truly unexpected acting talent!” Alex Tarantino Managing Director HDI Global Singapore
Stefan Feldmann Head of HDI Global Asia-Pacific Managing Director, HDI Global SE, Australia Managing Director HDI Global Specialty SE - Australia & New Zealand HDI Australia Perth team at the ‘Thrive in 25’ Staff Kickoff event The HRC team at lunch with new Senior Risk Engineer Ted Chen The Hong Kong team at the CIB Spring Dinner Michael Ahn Chief Executive HDI Global Hong Kong “With the arrival of Taehan Kim as our new Liability Lead Underwriter for North Asia, we’re reinforcing one of our key growth pillars. At the same time, we’re focused on promoting HDI’s full capabilities beyond traditional product lines to clients and brokers, especially in Specialty lines. By maximizing the value of our existing broker and cedent partnerships – and seeking new strategic collaborations – we’re committed to strengthening HDI’s presence and impact across key markets in North Asia.” HDInsight Edition 10 - page 3 Foreword HDInsights edition 15 | page 6 Thank you for being part of our journey. We look forward to continuing this exciting path of growth together. As we move further into the year, our focus remains steady: staying connected, agile, and supportive, not just as a company, but as a close-knit team united by purpose and empathy. In this edition of our newsletter, you’ll find: A summary of our Group’s financial results. A special feature from CRAsia, which interviewed our IP expert Rinnah Roque during the Global Programmes Asia Conference in Singapore, giving her a platform to share the strengths of HDI’s longstanding IP capabilities. A look at renewable energy investment across the Middle East and North Africa (MENA) region highlighting major insurance opportunities, with insights from HDI’s Senior Executive Officer and Director Willem van Wyk in Dubai and Franz Adamczyk, HDI’s Head of Global Risk Property. An introduction to HDI Risk Consulting (HRC)’s new Climate Consulting service, supporting businesses in identifying and addressing climate-related risks to future-proof operations. A summary of the recent HDInsight Live webinar on Reputation, Resilience and Recall, where experts discussed how to manage and mitigate product recalls, protect reputation, maintain trust, and rebuild resilience during crisis.
On a worldwide scale, HDI Global generated clear growth in both revenue and earnings. Insurance revenue rose 10 percent year-on-year to hit the milestone of EUR 10.0 (FY 2023: 9.1) billion for the first time; the growth percentage after adjustment for currency effects was 11 percent. The main drivers for this success were growth in new business and partly inflation-related price adjustments in existing business. The insurance service result increased to EUR 1,004 (770) million on the back of an improved loss ratio for frequency losses. Large loss payments rose year-on-year to EUR 402 (334) million but were below the budgeted figure of EUR 468 million, due to lower man-made-losses. NatCat budget was over-shot, reflecting the unbroken trend for increasing losses in this area. The combined ratio improved to 90.0 (91.5) percent. The net insurance financial and investment result before currency effects rose to EUR 83 (11) million due to higher investment volumes and an increase in current interest income. The positive performance by both underwriting and asset management clearly lifted EBIT to EUR 702 (446) million. RoE rose to 17.6 (14.3) percent, while HDI Global’s contribution to Talanx Group net income rose to EUR 501 (351) million. HDI Global full-year results hit milestone HDI Global full-year results hit milestone, Australian business continues growth with International Programmes and focus on Energyrelated risks Corporate & Specialty insurer HDI Global SE has reported positive financial results for the full year of 2024 with growth in both revenue and earnings. The main drivers for this encouraging trend were the growth in new business and inflation-related price adjustments. HDI Global’s Australian branch focused on service and growth, offering its comprehensive product range as a one-stop-shop to Australian clients. The branch contributed to the positive overall result of the Germany based multi-national Corporate & Specialty insurer belonging to the Talanx Group. HDInsights edition 15 | page 7 “In 2024, HDI Global Australia’s commitment to being a Partner in Transformation has been exemplified through our strategic expansion and innovation in our offerings. We successfully introduced our Cyber product offering across the Asia Pacific Region and launched our Power & Energy Hub to provide coverage across the entire energy value chain including construction and operation of renewable as well as upstream and downstream Oil & Gas Energy. In combination with our continued success in delivering International Programmes, we underlined our innovative approach to broker and client relationships and ensured that we continue to be known as the relationship insurer while experiencing rapid growth.” Stefan Feldmann Head of HDI Global Asia-Pacific Managing Director HDI Global SE, Australia Managing Director HDI Global Specialty SE - Australia & New Zealand
Contact - HDI Please contact our HDI Team with questions Given HDI Global’s strong worldwide results, Feldmann is optimistic for the current year in Australia as well: “For 2025, we see substantial growth opportunities in the Mid-Market space which we perceive to be underrepresented for HDI, but our brokering partners show a great interest in working with us as we offer a refreshingly different approach to this segment. It further supports our strategy to capitalise our newly aligned structure as a one-stopshop for commercial and specialty insurance solutions by offering extended service lines across multiple markets. In addition, we expect to see an uplift in our International Programmes as the world continues to globalise. As a market leader in providing risk management and risk transfer solutions in renewable energy, we will continue to support our clients on their journey to a cleaner and greener future as a reliable Partner in Transformation.” HDInsight Edition 10 - page 19 HDInsights edition 15 | page 8 Stefan Feldmann Head of HDI Global Asia-Pacific Managing Director HDI Global SE, Australia Managing Director HDI Global Specialty SE - Australia & New Zealand Stefan.Feldmann@hdi.global HDI Global full-year results hit milestone HDI Global SE, Australia https://www.hdi.global/en-au/aboutus/locations-contacts/asia-pacificafrica/australia/contacts/ HDI Global Specialty SE - Australia https://www.hdi.global/en-au/aboutus/locations-contacts/asia-pacificafrica/australia/contacts-specialty/ Financial Year 2024 Key Figures
Risk Management Maturity One feature of the Asian market is the varied maturity of the risk management profession from country to country. For example, says Roque, the market is much more developed in Singapore and Hong Kong and risk managers are able to articulate that to the market. But in other countries it is more challenging so insurers need to come up with a strategy that works for the region in terms of international programmes. “It is hard work but I am confident that we can do it. Our underwriting team is very supportive,” says Roque. The insurance market also varies in size and maturity across the region, creating challenges for IP providers. “The requirements differ from one country to another – laws and regulations are constantly changing, tax regimes are changing and we have to keep up. The quicker we can get the information, the better we are able to work with the brokers and the risk managers on implementing changes before the policy expires. More accurate information helps us to do our job better.” According to Roque, the insurer’s USP is its ability to issue local policies in more than 175 countries. “In Africa and other emerging and remote markets, we have built a local, on-the-ground presence and we are looking to do the same thing in Asia where our insurers and underwriters are able to speak the language. This makes it much easier to operate the programmes and develop the product.” In Singapore, HDI’s most popular line is marine cargo, followed by liability. In Australia, liability is the biggest line. The most challenging line is property. Cyber is still an emerging product in the region and therefore not ready to be included in IPs just yet, says Roque. “We just recently appointed a regional manager for cyber.” Price is inevitably an important driver for Asian clients but for the majority, service is more important, says Roque. “Watch this space,” says Rinnah Roque, regional service delivery manager producing office, international programmes (IPs) for HDI Global SE Australia, when asked about the insurer’s plans to develop its IP offering across Asia. Roque, who began her career in the Philippines with Pioneer Insurance and is based in Sydney, Australia, has responsibility for managing and developing this particular portfolio in Australia, Singapore and Hong Kong. While Roque is not an underwriter, she is the technical expert for the IPs that cover property, general liability, marine cargo and financial lines. “I represent the group network and have to make sure we have coverage and can issue policies that are compliant.” HDI Global’s IP offering covers three core markets in Asia-Pacific. “In Singapore, the types of markets involve big multinationals and large brokers who are very well-versed in IPs. They are knowledgeable and quite a few of their clients are domiciled elsewhere – say manufacturing giants in Thailand. In Australia, I work closely with brokers from start to finish. The majority of the portfolio are the global multinationals but you also have a number of mid-market firms that have businesses in the US and Canada and need separate policies for that region.” Watch this space! Watch this space! HDInsights edition 15 | page 9 CRAsia talks to Rinnah Roque from HDI Global SE, Australia about the insurer’s plans for its international programmes offering for Asia. First published in Commercial Risk Asia, March 2025 “When I joined HDI Global Australia, it was to grow and develop our branch’s IP arm. In our region, we have gone from 38 to 172 IPs in that time.” Rinnah Roque Regional Service Delivery Manager Producing Office (IPs)
“Whenever we have set up an IP, we meet or exceed our KPIs so the client is happy that they paid a little more. For example, it means they can continue to operate because they have the proper certification. It is not just the insurance company’s interests but about putting yourself in the shoes of the clients.” In terms of growing the business, the intention is to make HDI more visible as an IP provider and, ultimately, as the IP provider of choice for the region. A key part of this will be the insurer’s ART capabilities, including captives, says Roque. “We have an ART team based in France and I work very closely with them on structuring the IPs and submitting proposals.” HDI has been successful in captive fronting in the Asia region and in Australia specifically. The company now has the green light to offer captives and other ART services across the region. Its Paris-based HDI Enablers division, which is responsible for promoting ART in Europe, appointed a new head, Eric Joly-Pottuz, as part of a management reshuffle back in October, and the aim is to incorporate more ART as part of the IP offering. HDInsight Edition 10 - page 19 HDInsights edition 15 | page 10 Watch this space! Rinnah Roque speaking at the Global Programmes Asia conference in Singapore on 28 November 2024 Contact - HDI Rinnah Roque Service Delivery Manager, Producing Office IP P: +61 426 452 730 Rinnah.Roque@hdi.global Your business is international. Our reach is global. Insurance solutions - Delivered worldwide. Click to learn more
The MENA region has become a focal point for aggressive expansion of the renewables sector. While current capacity is still below global levels, it is said to be the fastest growing region outside China in terms of adding capacity. With ambitious projects coming online continuously, insurers are well-placed to de-risk these energy transitions beyond the critical growth phase. “We do see significant investment in renewable energy across the Middle Eastern region. Construction on some of the largest solar renewable energy projects in the world is already afoot with many more in the planning phase. Incorporating renewable power in the energy mix is a priority for the region and its energy security. In the MENA region, the GW produced by renewables is expected to triple from 2024 to 2030. So, we do see a lot of opportunities to support not only our present clients but also new firms that are entering the region. With some of the highest solar irradiance levels in the world, the Gulf states have ample solar resources and to a lesser extent, wind.” Some ambitious solar projects came online last year. In Saudi Arabia, the Al Shuaibah 1 solar plant became operational in November 2024. In neighbouring UAE, the world’s largest single-site solar park, the Mohammad bin Rashid Al Maktoum Solar Park advanced to its final development phase and is targeting carbon-emissions reduction of 6.5m tons upon completion. Renewables Insurance Mr van Wyk said, “According to a Sept 2024 report from the Energy Industries Council, the Middle East is on course to invest $75b in renewable energy projects by 2030. “Often national oil companies, including state-linked companies are driving investments into renewables but we see more and private firms supporting capital requirements. HDI Global is already playing a significant role in insuring energy projects both in the construction and operational phases. We do see ourselves as partners as the region transitions to lower emissions energy and are building a strong reputation as a technically capable long term risk partner in the region.” When asked about the launch of the company’s newly minted energy unit and how it could leverage the transition from fossil fuels, he said, “We continue to see increased investment from the Middle Eastern countries in renewables. Ambitious strategies and commitments from governments are driving this development with Saudi Arabia, Bahrain and Kuwait aiming to be net-zero by 2060 and Oman and the UAE by 2050. Renewables insurance: Supporting MENA’s energy transition A significant portion of investment in renewable energy happens in the MENA region, providing a glut of opportunities for insurers. “We (MEIRspeak to HDI Global’s Messrs Willem van Wyk and Franz Adamczyk about the ambitious energy transition and investment in MENA, the associated risks and the role of technology in shaping the future of renewables insurance.” Renewables insurance: Supporting MENA’s energy transition HDInsights edition 15 | page 11 Willem van Wyk Senior Executive Officer, Middle East HDI Global SE, Dubai First published in Middle East Insurance Review, April 2025
For a lot of technologies, some key parts are crucial for the operation, like the turbines for wind energy. “Our AI driven assessment, done with a variety of variables that are continuously monitored, allows us to focus on those parts and ensure the best risk mitigation possible. “This enables early detection of damage, minimises failures and maximises the performance of the turbines. Additionally, we have similar technologies for battery energy storage systems. It shows that we are willing to invest in such technologies and support our clients with the best possible expertise.” Partnerships with local stakeholders to drive growth “With the start of our Dubai operation a few months ago, we are now able to deliver faster and more dedicated underwriting directly from the market. Forming those close relationships with the renewable energy community to share information and ideas in managing risks is only possible if you are there – just like we are. Additionally, those learnings and developments in the managing of risks are vital to understand how we can support the development of new technologies as best as possible,” said Mr van Wyk. Hence, HDI sees the region as an integral part of its aim to be a global leader in providing risk transfer vehicles in developing the renewables sector.” Specialised risk solutions for renewables The transition to renewable energy is not just about green energy; it’s also about managing the complex risks associated with these projects. These include tariffs, access to rare minerals for solar panels, changes in technology and Nat CATs. Rain damage to the Noor 1 installation in the Al Makhtoum Solar Park illustrates risks from Nat CATs. According to HDI Global global head of energy and power Franz Adamczyk, “while the shift towards renewable energy solutions is picking up speed, with billions of investments going into this sector, most of these are very complex technologies, that need dedicated support from the insurance companies. Insurers must be well equipped to deliver this along the whole value chain – from the planning/project phase to the operational phase.” HDInsight Edition 10 - page 19 HDInsights edition 15 | page 12 Contact - HDI Willem van Wyk Senior Executive Officer, Middle East P: +61 426 452 730 Willem.vanWyk@hdi.global “Our aim is to be a thought leader in the renewable energy space in the world by helping clients to manage risks around new technologies and renewable projects. With our risk engineering, underwriting expertise, claims learnings, and other relevant data we can support clients to make projects bankable by supporting them and managing the transfer of various risks. This worldwide span leads to a global network of experts, that leaves us very well equipped to tackle any challenge our clients may have.” Franz Adamczyk Head of Global Risk - Property and Energy HDI Global SE, Germany AI and next-generation technology shaping renewables insurance Mr Adamczyk said, “The combination of AI and underwriting expertise will be essential in the renewables space. Renewables insurance: Supporting MENA’s energy transition Franz Adamczyk Head of Global Risk - Property and Energy Franz.Adamczyk@hdi.global
As natural hazards become increasingly frequent and severe, businesses and insurers must take a proactive, collaborative approach to mitigate risks. “Companies are really forced to figure out how physical climate risks affect their business,” said Lars Regner, Head of Resilience Services at HDI Risk Consulting (HRC). Beyond regulatory compliance, businesses must also evaluate past climate events. Lender, investor and shareholder expectations further heighten the need for climate risk strategies. HDI Global supports businesses with both insurance solutions and practical climate risk analysis to enhance resilience. HRC’s new Climate Consulting service provides businesses with location-specific analyses of both chronic and acute physical climate risks. It includes: Desktop assessments of topography, regional climate, and natural hazards. On-site inspections to analyse potential impacts on infrastructure, logistics, and operational processes. Site-specific advisory reports with recommended mitigation measures. HDI Risk Consulting (HRC), a wholly owned subsidiary of HDI Global, has introduced Climate Consulting, a new service designed to assist businesses in assessing and mitigating climaterelated risks. This initiative comes in response to growing demand from clients seeking practical solutions to enhance climate resilience. HDI Global Launches Climate Consulting Service to Help Businesses Manage Climate Risks third of our book.” HDI Global Launches Climate Consulting Service to Help Businesses Manage Climate Risks HDInsights edition 15 | page 13 Comprehensive Climate Risk Reports HDI’s Climate Risk Reports identify and assess climate risks for specific locations. They provide an in-depth assessment of a company’s exposure to physical climate-related risks. This covers approximately 30 climate perils, such as heat waves, heavy precipitation, and saline intrusion, helping companies understand how these risks affect their operations. Risk assessments are available at 5-year intervals, with short-term risks projected for 2025, medium-term risks for 10-30 years, and long-term forecasts extending to 2060 and beyond. The service evaluates climate risks under three different climate change scenarios spanning up to the year 2100: Paris-Aligned Scenario: A moderate increase in global temperature between 1.5 and 2.0 degrees Celsius – a level already being approached. Emission Peak in 2040: An optimistic scenario where carbon emissions start declining in 2040. Business-as-Usual Scenario: A trajectory where emissions continue to rise, leading to significant climate challenges beyond 2040. These assessments help businesses anticipate future risks, including the potential for uninhabitable regions and food production challenges. Collaboration with Mitiga Solutions To strengthen the accuracy of risk assessments, HRC collaborates with Mitiga Solutions, a leading climate data provider. The integration of Mitiga’s datasets with ARGOS and other proprietary sources ensures globally accepted and detailed risk evaluations. “The final product is a comprehensive PDF report, detailing climate perils, risk gradings, and specific mitigation recommendations,” Mr Regner said. “We offer climate risk reports as well as climate consulting where risk engineers identify climate risks. Later in the year, we will roll out our updated Natcat tool HDI ARGOS 4.0 for existing clients, where they can assess their risks, and of course, we also offer solutions for areas of concern that need improvements.” Lars Regner Head of Resilience Services at HDI Risk Consulting (HRC)
HDI Risk Consulting differentiates itself due to highly detailed reports that go beyond generic risk gradings. Companies can make informed decisions based on their individual risk tolerance. For example, a client facing increased heat waves may need to invest in cooling systems or protective measures for outdoor workers. Similarly, businesses vulnerable to floods can determine whether to install protective barriers based on a 1-in-50-year or 1-in-200-year event risk. Developed with Customer Feedback With the idea born in early 2024, the Climate Risk Reports were developed with direct client feedback. “Client feedback has influenced the design of HRC’s reports down to details such as color-coding risk gradings to ensure usability,” Mr Regner said. The globally scalable solution ensures that international clients receive consistent reports across all regions. The service can also be integrated with international insurance programmes (IPs), aligning with global risk assessment standards. In Australia, regulatory requirements are becoming increasingly stringent, Philipp Glanz, Managing Director of HDI Risk Consulting (HRC), reports. The Australian Accounting Standards Board (AASB) S2 mandates that certain entities disclose climate-related risks affecting their financial standing. “Larger companies had to comply by January 2025, with midsized and smaller businesses following later,” Mr Glanz said. He advised that the first mandatory reporting date for entities with a 30 June financial year-end will be 30 June 2026. Contact - HDI Additional Risk Management Services Beyond climate assessments, HDI Risk Consulting supports businesses with Business Continuity as well as Preparedness Plans for ongoing risk mitigation and resilience improvement. Preparedness plans for windstorms, earthquakes, floods, and bushfires are available on HDI’s website, with more detailed sitespecific insights offered through on-site visits. With Climate Consulting, HDI Risk Consulting is equipping businesses with the tools and insights they need to navigate an increasingly uncertain climate future, ensuring both compliance and long-term sustainability. HDInsight Edition 10 - page 19 HDInsights edition 15 | page 14 Lars Regner Head of Central Services HDI Risk Consulting (HRC) P: +49 (0) 511 645 - 4780 Lars.Regner@hdi.global HDI Global Launches Climate Consulting Service to Help Businesses Manage Climate Risks Philipp Glanz Risk Engineering Managing Director HDI Global SE P: +61 (0) 498 016 552 Philipp.Glanz@hdi.global
Click to learn more We are risk mitigators. Our experts are always at your side for the best solutions, worldwide. We are HDI Global. #PartnerInTransformation www.hdi.global/en-au/
Crisis events can hit when least expected, and a product recall can be one of the most damaging. In an HDInsight Live webinar, experts shared strategies for managing and mitigating the fallout from a recall and how to protect a company's reputation, maintain stakeholder trust, and rebuild resilience during times of crisis. The number of product recalls in Australia has been steadily rising over the past decade, driven by stricter labelling regulations, more rigorous allergen declarations, and advances in testing technologies. “As technology is advancing, we're seeing more and more recalls as a result,” said Jae Ramsbotham, Senior Underwriter for Crisis Management at HDI Global SE in Australia, during a recent HDInsight Live webinar. The trend underscores the growing importance of product recall insurance as a vital safeguard for businesses navigating an increasingly complex regulatory landscape. HDInsight LIVE online seminar Recall, Resilience and Reputation HDInsights edition 15 | page 16 What is Product Recall Insurance? Product recall insurance is a specialized product that helps businesses manage the financial costs of removing harmful products from the market, and it provides access to crisis consultants to protect a company’s brand and reputation. Recall Trends in Australia and New Zealand: 836 food recalls have occurred over the past 10 years, with an upward trend in the number of recalls, now averaging 84 per year according to Food Standards Australia New Zealand (FSANZ). Common recall causes include undeclared allergens, microbiological contamination, and packaging faults. Undeclared allergens are the most frequent trigger, particularly in processed foods, with milk being the most common allergen, followed by tree nuts, wheat, gluten, and eggs. The rise in product recall claims post-COVID has brought the relevance and prevalence of such incidents to the forefront. In times of crisis, public expectations for businesses are high, and it’s crucial to learn from past experiences: Examples of such events are the berry contamination, the strawberry needles, the salmonella in eggs, and various other food recalls, including McCain's low-media attention case last year.
Recommendations for an incident: If a company believes a situation may escalate, they should call the Crisis24 hotline immediately. The team operates 24/7, following the sun model, ensuring clients are speaking to someone in their time zone. After taking initial details, the operations centre is alerted, and within 10-20 minutes, an expert will call back to assess the situation and provide the necessary support. The Response Duty Officer (RDO) is a skilled professional who will call clients back and act as an extension of their crisis team. They work 24/7 and have extensive experience handling incidents, providing advice and support. During the initial fact-finding call, they will gather the necessary details to assess the situation and determine how best to assist the client. While sometimes clients may only need to notify their insurance company, Crisis24 is here to offer help at no extra cost. Confidentiality is a top priority – they will not share any information clients provide. Case Study: Product Contamination Event Deciding when to report a potential product contamination is a matter of judgment, typically based on whether the issue poses a risk of bodily harm. A common guideline is to report any incident that might lead to an insurance claim. Effectively managing recalls is therefore essential. Insurers as well as Crisis24, a global leader in crisis and risk management, play a vital role in guiding companies back to a strong position during these challenging times. Beyond media and consumer reputational damage, it’s also important to address the upstream and downstream reputational impacts within the industry and beyond. James Walters, Director Practice Lead at Crisis24, has more than 30 years of experience in crisis management. He has assisted companies of different sizes in preventing or managing a crisis, and in particular, situations that arise as a result of a recall event. During the webinar, he explained that when companies experience an incident, it's important to assess whether it could lead to a claim on their insurance policy. HDInsight Edition 10 - page 21 Crisis24 provides both response services and pre-incident support to clients with product contamination insurance. For insured clients, they use a bursary amount to help mitigate risks and prevent incidents. However, their primary role is to respond when an incident occurs. If clients are involved in an incident, the first step is to contact the Crisis24 hotline, which is listed in their policy documentation. This will connect you with their team, who can provide the necessary assistance. HDInsight LIVE: Recall, Resilience and Reputation HDInsights edition 15 | page 17 “These significant events, much like major cyber incidents, can severely damage a company’s reputation. When people mention these companies, the immediate association is often with the crisis they experienced. The reputational damage from such events is profound, and companies don’t want to be seen as synonymous with a major crisis.” David Lloyd Regional Claims Manager, Asia-Pacific HDI Global SE image
“It’s important to consider whether this coverage is appropriate for products with longer lifespans or those that are difficult to uninstall. For example, recalling installed products, like machinery or components, can lead to very high expenses for removal, which could quickly exhaust the sublimit of the coverage (typically ranging from $500,000 to $5 million under the general liability policy). This endorsement is generally not ideal for expensive or complex recall scenarios but works well for short-term, consumable products.” Laura Lawrence NSW Liability Underwriting Manager, Mid-Market HDI Global SE, Australia In one instance, a well-known food brand received a customer complaint about a sandwich containing black plastic fragments. The customer submitted photos and batch details, noting at least two pieces of plastic – one over 2 cm long – which could have posed a choking hazard. Despite this, the incident was treated as routine, with the customer offered a goodwill voucher and no escalation to insurers or crisis consultants. However, within two days, similar reports surged. While occasional foreign matter complaints were not unusual, the sudden volume made it clear that a broader contamination issue was unfolding. The insurer and crisis consultants were eventually notified three days after the initial report. Using the complimentary service called Digital Trace, the consultants uncovered widespread social media discussion, with users naming the brand and criticising its response. A crisis team was formed to manage communications, notify regulators, and investigate the source. The issue was traced to a single batch, and relevant outlets were promptly alerted. Although the affected products were no longer on shelves, social media criticism continued, highlighting dissatisfaction with how the incident was initially handled. This case underscores the importance of clear escalation protocols and active social media monitoring during contamination events. Delays can amplify reputational damage – even when the physical risk is contained. HDInsight Edition 10 - page 21 HDInsight LIVE: Recall, Resilience and Reputation HDInsights edition 15 | page 18 Product Recall Insurance Product recall insurance has become a critical tool for businesses, covering the financial burden of withdrawing faulty or harmful products from the market and offering access to crisis consultants who help protect a company’s brand and reputation. What is a Recall Expenses Endorsement? The recall expenses endorsement is typically an extension of a general liability policy, though not every insurer offers it. This coverage is more limited than full recall insurance. It typically covers general costs and expenses related to a recall event, which can include advertising, transport costs for withdrawing products, labor costs (e.g., for staff to pull products from stores), and disposal or destruction of the products. However, it does not cover the cost of the product itself or any replacements, nor does it cover guarantees or warranties. The triggers for this coverage are similar to full recall coverage: either a concern that the product could cause personal injury or property damage (e.g., due to an undeclared allergen), or a government-mandated recall due to safety regulations. Additionally, the product must have left the insured’s control and be in the market for the coverage to apply.
HDInsight Edition 10 - page 21 HDInsight LIVE: Recall, Resilience and Reputation HDInsights edition 15 | page 19 “In summary, while recall extensions may offer basic coverage, a standalone recall policy provides much broader protection, including expert consultants and a wider range of covered costs, making it a critical safeguard against the financial and reputational impact of product recalls.” Jae Ramsbotham Senior Underwriter Crisis Management HDI Global SE, Australia Benefits of Standalone Recall Insurance: Covers a wider range of costs, including inspection, destruction, extra labour, replacement, business interruption, and consultant fees. Addresses both accidental contamination and malicious tampering events. Supports brand rehabilitation in the event of a recall. Includes access to crisis consultants for stakeholder management and consumer trust recovery. Pre-incident funds may be available for improving preparedness and identifying gaps before a recall occurs. One key limitation of the recall expenses endorsement is that it only applies to products within 12 months of the recall event and excludes products past their useby date. This type of coverage is generally more suited for short-shelf-life products like food and beverages, which can easily be removed from shelves. Recall Extension vs. Standalone Recall Policy: The recall extension is often a limited coverage on a general liability policy, covering only basic recallrelated expenses (e.g., transport, advertising, labor, and disposal). However, it excludes product replacement and guarantees. A standalone recall policy is more comprehensive. It covers both direct and third-party recall costs (e.g., if a product a company supplies causes a recall in another product). It also includes protection against malicious product tampering, which is not covered by the recall extension. A standalone policy offers higher limits (up to $20 million locally) than the recall extension, which usually has lower sub-limits. Contact - HDI Jae Ramsbotham Senior Underwriter Crisis Management P: +61 409 342 324 Jae.Ramsbotham@hdi.global Laura Lawrence NSW Liability Underwriting Manager, Mid-Market P: +61 411 010 139 Laura.Lawrence@hdi.global David Lloyd Regional Claims Manager. AsiaPacific P: +61 411 017 392 David.Lloyd@hdi.global Watch here: HDInsight LIVE: Reputation, Resilience & Recall
Revealed – insurance industry's Global 100 for 2025 Insurance Business has published its 2025 Global 100 list, highlighting individuals who have influenced the industry in multiple regions. Stefan Feldmann leads HDI Global’s refreshingly different culture as a top insurance professional. Stefan Feldmann is the head of HDI Global Asia Pacific, as well as the managing director of HDI Global SE, Australia, and HDI Global Specialty SE, Australia and New Zealand. Since joining the group in 2010 and relaunching the HDI Global SE brand, he has played a pivotal role in driving the company’s significant growth. Feldmann oversees operations in Australia, New Zealand, Singapore and Hong Kong, which also include Greater China and South Korea. In 2024, he spearheaded the expansion of HDI’s Dubai operations, which now serve the Middle East region. The Asia-Pacific region is one of the fastest-growing areas for HDI Global, and Feldmann’s journey has been nothing short of remarkable, beginning his career as an underwriter in his native Germany. Feldmann explains, “Drawing on my extensive industry experience, I’ve fostered a team-oriented culture at HDI, creating a sense of unity and purpose that enhances our work environment and strengthens our relationships with key partners.” A key strength of Feldmann’s leadership is his ability to balance ambitious growth with an innovative mindset. “As we continue to expand and evolve, it is crucial to maintain our culture of being refreshingly different,” he says. “It’s essential that we regularly communicate and reflect on this culture to ensure it stays fresh, engaging and inspiring for both our team and clients.” Over the past 12 months, Feldmann has focused on prioritising authentic, long-term partnerships. He has also worked to support broker partners and clients by developing products, services and capabilities tailored to their needs. HDI offers a broad range of products designed to protect businesses from risks worldwide, including international insurance programmes. third of our book.” Revealed - insurance industry’s Global 100 for 2025 HDInsights edition 15 | page 20 “We aim to be our clients' preferred partner in transformation,” he notes. “To achieve this, we must remain adaptable and attuned to their evolving needs, which is why we maintain close, ongoing dialogues with them.” Stefan Feldmann Head of HDI Global Asia-Pacific Managing Director, HDI Global SE, Australia Managing Director, HDI Global Specialty SE Australia & New Zealand Their exceptional service also includes comprehensive coverage for personnel assignments abroad. While they traditionally serve large industrial corporate clients, HDI is expanding its reach to the mid-market sector as the company continues to grow. “We place a premium on personal interactions, whether through video calls or face-to-face meetings,” says Feldmann. “Building relationships with our clients and brokers is crucial. We believe that genuine engagement is key to earning our partners' trust.” Honoured as one of Insurance Business’ Global 100 for 2025, Feldmann continues to make an impact on the global stage. The opening of HDI’s Dubai International Financial Centre office is part of the company’s broader strategy to strengthen its global presence. Feldmann attributes this success to the unique culture cultivated within HDI’s Australian branch, which has helped establish the company as a leading industrial insurer. “Our culture sets us apart from other insurers in the region,” he explains. “Our teams work collaboratively, employees take ownership of their actions, and performance is the guiding principle. Ultimately, this culture directly supports our goal of being a preferred partner for clients and brokers.” He concludes, “With our expert teams, we meet the needs of dynamic businesses and pave the way for their success.” First published in Insurance Business Mag, March 2025
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