2012 Emerging Trends and Key Issues Report Product Recall & Contamination Risk Management CONTENTS

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Eileen Henry
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3 2012 Emerging Trends and Key Issues Report Product Recall & Contamination Risk Management The 2012 Emerging Trends and Key Issues Product Recall & Contamination Risk Management Report is published annually each summer by Aon Crisis Management. This industry leading publication discusses changes in the regulatory environment relating to product safety and also provides updates on capacity, carriers and new coverage enhancements. The report is available to clients of Aon Crisis Management and is available in both hard copy and electronic versions. CONTENTS Significant Recall and Contamination Events Cantaloupe listeria contamination Ground Turkey salmonella contamination European Sprout e.coli contamination Reportable Food Registry Report New Laws, Regulations and Reporting Requirements 7 Food Safety Modernization Act FDA s Global Strategy on Food Safety Food Defense and Intentional Contamination Consumer Products Regulatory Update New Product Recall Rules in Canada Product Safety & Recall Jurisdictions Recall Frequency, Severity & Benchmarking 12 Recall Costs Survey Significant Recalls Peer Benchmarking Carrier and Capacity Changes 19 London and the Lloyd s Market U.S. Domestic Market Bermuda Market Aon Crisis Management 1

5 Significant Recall and Contamination Events The past year has seen a number of significant illnesses and deaths in the U.S. and Europe as a result of contaminated food products. The most significant U.S. food contamination incident in 2011 occurred as a result of listeria tainted cantaloupes. The outbreak, eventually traced back to a Colorado farm, was first detected by the Center for Disease Control (CDC) in September. As of December 8th when the CDC issued its final update on the outbreak, a total of 146 infections from 28 states were reported leading to 30 deaths and one miscarriage. This incident has become the most deadly U.S. outbreak of food borne illness since the CDC began tracking listeria cases in The CDC has advised that available evidence indicates that the outbreak is over. On August 3rd, Cargill Meat Solutions Corporation announced a voluntary recall of approximately 36 million pounds of ground turkey because of potential salmonella bacteria contamination. About 5 billion pounds of readyto-cook turkey meat are sold in the United States each year, of which 10% is ground. The recalled meat represents slightly more than 6% of the national production of ground turkey in a given year. Cargill s plant in Springdale Arkansas, processed the suspected fresh and frozen ground turkey products between February 20 and August 2, As of November 10th when the CDC issued its final update on the outbreak, a total of 136 persons infected with the outbreak strain of Salmonella Heidelberg were reported from 34 states including one death. According to the CDC, this particular outbreak appears to be over. Overseas, European farmers found themselves implicated in a devastating E. coli outbreak that first surfaced in Germany in early May. More than 4,000 people were stricken with illness, nearly all of whom lived in Germany or had traveled there. At least 48 people died, according to the European Center for Disease Prevention and Control. European investigators cautiously identified the likely source as contaminated fenugreek seeds from Egypt. Officials also said that the seeds seemed to have entered Europe through a single German importer, which acted as a distributor to other companies. Reportable Food Registry s Second Annual Report - The Reportable Food Registry was established by the Food and Drug Administration Amendments Act of 2007 and amended the Food, Drug, and Cosmetic Act by creating the Reportable Food Registry. This required the FDA to establish an electronic portal to which reports about instances of reportable food must be submitted to FDA within 24 hours. A reportable food is an article of food/ feed for which there is a reasonable probability that the use of, or exposure to, such article of food will cause serious adverse health consequences or death to humans or animals. The Reportable Food Registry has proven itself a valuable tool to help prevent contaminated food from reaching the public. By providing early warning about potential public-health risks from reportable foods, the Registry increased the speed with which the FDA, its state- and local-level partners, and industry could remove hazards from the marketplace. The Agency also can use the data to target inspections, plan work, identify and prioritize risks and develop guidance for industry on how to strengthen preventative controls. Key results of the year two report show salmonella as the highest reported food safety issue at 38.2%, followed by undeclared allergens at 33.3% and listeria at 17.8%. These were also the three leading issues report in the previous year. Aon Crisis Management 03

The Role of USDA s Food Safety and Inspection Service to Ensure Foodborne Disease Control and Prevention

The Role of USDA s Food Safety and Inspection Service to Ensure Foodborne Disease Control and Prevention David Goldman, MD, MPH Assistant Administrator Office of Public Health Science Agricultural Outlook