WTW presents a fleet risk financing solution

Advisory and trading company, WTW, has launched its new Structured Auto Buffer London Excess (StABLE) facility as a risk financing solution using 'Swing Plan' frameworks, designed to help organizations manage fleet-related risk while offering potential rewards for successful risk. management and performance of good losses.

The STABLE facility allows clients to share the risks and potential rewards from their fleet operations. If the loss remains below a predetermined limit, clients can get a portion of the premium back, with the option to cancel the policy for more refunds.

However, if the loss exceeds this limit, additional premiums are determined, providing a more equitable way of sharing the risk. Clients also have the flexibility of matching terms, including premium property maintenance that can support cash flow. In cases where the limitations have expired, there are options for policy reinstatement.

The solution responds to concerns among ship operators who, despite investing in safety systems and telematics, are not seeing a reduction in premiums from carriers.

WTW's new product aims to provide a degree of protection across a wide range of portfolio values ​​and provide clients with more budget predictability over many years. The structure defines limits on potential losses, which helps create a more transparent budgeting process.

James Sallada, head of North American casualty at WTW, emphasized that the STABLE facility provides a new way to share risks, especially as market power becomes more limited and expensive.

“This facility is yet another example of WTW's customer-focused operations, and enables our team to quickly offer a wide range of available terms and conditions, which can be tailored to meet specific balance sheet needs for customers,” said Sallada.

The STABLE facility is intended for customers who operate larger or larger fleets, including vehicles such as trucks, buses, and construction vehicles. These customers work in many industries, including delivery, construction, waste management, and public transportation.

Jon Drummond, head of transportation and WTW's transportation and logistics industry leader in North America, emphasized the need for risk financing structures to improve and the increasing severity of injury risks.

“This unique solution empowers clients and allows them to leverage capital to better manage the overall cost of risk in an inflationary environment, particularly in terms of premium costs and losses,” said Drummond.

Read more about WTW's sustainability initiatives here.

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