Aon offers fuel costs protection product

Aon has launched a new fuel insurance solution, which it says is designed to help companies protect against rising fuel costs.

Backed by AAA-rated credit insurance, the broker said the coverage will be activated if the cost of fuel rises and exceeds an agreed limit.

The policy will cover the difference between the agreed price and the higher price, paid out monthly, to help companies manage their fuel cost exposure and avoid significant spikes in market price.

Aon did not immediately disclose which paper is supporting the product.

The broker claimed that the fuel product can provide a valuable solution to companies that consume large amounts of fuel, including marine, aviation, construction, mining and energy, and is one of the first of its kind commercially available in the sector.

“Aon is committed to identifying, understanding and developing innovative solutions to meet our clients’ evolving needs,” said Chris Bhatt, global head of sales for marine.

“With the launch of this solution, we are pleased to support our clients as they navigate an increasingly complex commercial environment and address long-tail risks to promote corporate resiliency and sustainability.”

The Aon product appears to be similar in style to an asset-focused product which has been around the market since the 1980s, namely Residual Value Insurance (RVI).

RSI insurance protects policyholders against unforeseen loss of value of an asset by guarantying a future value.