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Hi {First Name},


I hope this email finds you well. Along with the latest news, this month's newsletter includes Verisk's Reconstruction Cost Analysis and tips on navigating a hard insurance market.


As we continue to navigate market challenges, our team is ready to leverage our strong market relationships, resources, knowledge, and creativity to deliver meaningful solutions.


Jack

Navigating a Hard Insurance Market

Severe weather events, large jury verdicts, COVID-19, and supply chain issues are all, in part, behind the current market cycle, which continues to present challenges. The rising rates for some lines have slowed, while others – such as cyber – are still experiencing double-digit increases. While we don’t know how long the hard market will continue, there are steps you can take to help you navigate the market. Don’t miss my article on page 9 in May issue of Business Record Iowa.

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Inflation boosts reconstruction costs as higher fuel prices exacerbate volatility


According to Verisk's Q2-2022 360Value Quarterly Reconstruction Cost Analysis, Total reconstruction costs, including materials and retail labor, rose 13.5% from April 2021 to April 2022, nearly doubling the pace of increase from January 2021 to January 2022, when costs rose 7.2%. Overall inflation and rising fuel prices are driving the price swings as the cost of producing and transporting goods rises.

News Roundup

Product Defect

Boy has permanent hearing loss in right ear from AirPods notification, lawsuit says

A 12-year-old boy was using his Apple AirPods to watch Netflix on his iPhone when his Texas parents say an Amber Alert blared through the earbuds. Two years later, the now-teenager still suffers severe hearing loss and other related symptoms.


Two women are suing Google over Fitbit burn injuries, arguing a previous recall should have included the firm's other smartwatch models 

Two women are suing Google over its Fitbit smartwatches, claiming models that weren't included in a recent recall had caused burns. 


Product Liability

Ford found liable in lawsuit in West Virginia woman's death

A jury in West Virginia has awarded $7 million in a product liability lawsuit against Ford Motor Co. to the family of a woman who died when her Mustang was involved in a fiery crash.


Federal jury says 3M must pay $77.5 million to army veteran in latest earplugs case

A federal jury in Florida ruled that 3M Co. has to pay $77.5 million to army veteran James Beal, whose lawsuit alleged the company's faulty earplugs caused hearing loss and ringing in his ears. The award was the largest in a series of cases that claim a version of 3M's earplugs sold to the military, called CAEv2, were defective and didn't protect the ears from harmful noise.


Supreme Court urged by US to reject Bayer Roundup appeal

The Biden administration urged the US Supreme Court to reject a Bayer appeal of a California case and clear the way for potentially billions of dollars in lawsuits claiming that the top-selling Roundup weed-killer causes cancer.


FDA proposes order forcing Philips to repair, replace or refund all recalled ventilators

Seemingly still dissatisfied with Philips handling of its ongoing respiratory device recall, the FDA is now considering taking further action to force the Dutch medtech to tighten up its response to the safety event.


New York's high court tosses once-huge talc verdict, citing lack of evidence 

New York's highest court threw out a $16.5 million jury verdict against a talc manufacturer, saying plaintiff experts failed to prove a woman's cancer death was due to inhaling asbestos fibers in the talcum powder she claimed to have used daily for more than 20 years. 


Amid legal tumult, J&J shareholders reject proposal to end talc sales worldwide 

Despite facing a mountain of litigation over its talc products and pulling them off shelves in North America two years ago, Johnson & Johnson will continue to sell them in many markets around the world. 


Recalls

Jif peanut butter products recalled over salmonella outbreak traced to Kentucky plant

A salmonella outbreak at a factory in Kentucky has led to nearly 50 different Jif peanut butter products being recalled across the United States and Canada.


Skittles, Starbursts and Life Savers candies recalled for metal bits

Mars Wrigley announced it was recalling several types of Skittles, Starbursts and Life Savers candies over concerns of metal contamination.


Tesla recalling more than 130,000 cars as touchscreens overheat and turn off

Tesla is recalling about 130,000 vehicles across the United States after it was found their touch screens can overheat and go blank.


Hyundai recalls 215K Sonatas; faulty hoses can leak fuel

Hyundai is recalling more than 215,000 midsize cars in the U.S. most for a second time because fuel hoses can leak in the engine compartment and cause fires.


Rivian Recalling 502 Electric Pickup Trucks

Electric vehicle startup Rivian Automotive Inc. is recalling 502 battery powered pickup trucks over potentially faulty air bags that could pose a safety risk to children in the front passenger seat.


Alabama-based Pop's Que and Stew recalls frozen stew product

An Alabama-based business is recalling more than 12,000 pounds of its frozen stew products that were made without a federal inspection.


Children's robes recalled for burn risk

The U.S. Consumer Product Safety Commission announced recalls of certain children's robes citing burn risks.


Chocolates have been recalled from T.J. Maxx, Marshalls, other chains after an illness

Vegan chocolates boasting of being "Dairy Free" had milk and have been recalled from T.J. Maxx, Marshalls, HomeGoods, Sierra and Homesense, the chains' parent company announced.


Ford recalls Explorer SUVs that can roll away while in park 

Ford Motor Co. is recalling more than a quarter-million Explorer SUVs in the U.S. because they can roll away unexpectedly while shifted into park.


Tesla recalls 48,000 U.S. vehicles over speed display 

Tesla is recalling about 48,000 Model 3 Performance vehicles in the United States because they may not display the speedometer while in "Track Mode," documents released show. 


Supply Chain

Supply chain problems keep EU car sales on tight leash

Supply chain problems further hobbled the EU auto industry in April, data showed, with sales falling by a fifth from the same period last year.


Nestle ships baby formula to US from Switzerland amid shortages

Swiss food giant Nestle is to fly baby formula from Switzerland and the Netherlands to the United States amid shortages there, a group spokeswoman.


House Dems propose $28 million to address formula shortage

Rep. Rosa DeLauro, the Democratic chair of the House Appropriations Committee, said the bill would help the Food and Drug Administration take important steps to restore the formula supply in a safe and secure manner.


NHS facing shortages of essential drugs due to supply chain problems

The NHS is facing shortages of drugs relied on by hundreds of thousands of patients to keep them healthy.


Startups apply artificial intelligence to supply chain disruptions 

Over the last two years a series of unexpected events has scrambled global supply chains. Coronavirus, war in Ukraine, Brexit and a container ship wedged in the Suez Canal have combined to delay deliveries of everything from bicycles to pet food. 

Manufacturing Practice Team
Jack A. Carra, CIC, CLCS
Senior Vice President
(515) 237-0189
Natalie Winder
Natalie Winder, CRM, CIC
Client Service Executive
(515) 237-0140
Jill Noordhoek  
Workers’ Compensation Consultant
(515) 453-9369 
Chuck Martinek, CSP
VP - Loss Control Services 
(515) 237-0188
Elizabeth Kain, MOT, OTR/L, CEES
Loss Control Consultant
(515) 237-0126
Alison L. Miner, JD
Director of Claims
(515) 237-0153
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