The number of recalls of dangerous and faulty consumer goods more than doubled last year, prompting a rise in demand for insurance.
The figures were revealed by PricewaterhouseCoopers (PWC), which analysed the latest European Commission statistics.
By the end of December 2005, an average of two recalls a day were being made, with 706 reports filed at the end of the year - a 126% rise.
Hungary and Germany topped the EU member recall tables, with 132 and 101 recalls respectively.
Product recalls in the UK increased by 169% from 16 in 2004 to 43 in 2005.
Graeme Berry, director of PWC's insurance claims and forensic services practice said: "Manufacturers are realising how dramatically the legal environment has changed. The reported rise in recalls has led to more attention being given to risk management in the supply chain, and to increased demand for product recall insurance cover."
Neil Evans, vice president of crisis management division, AIG Europe, said: "We have seen an increase in demand for product recall insurance but not to the same degree as notifications."