Designed to help companies mitigate the impacts of rising fuel costs, the new protection will be activated if the cost of fuel increases and exceeds an agreed limit.

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

Chris Bhatt, Global Head of Sales, Marine, at Aon, commented: “Aon is committed to identifying, understanding and developing innovative solutions to meet our clients’ evolving needs.

“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.”

According to Aon, the new solution, which is one of the first of its kind commercially available, offers a valuable solution to companies that consume large amounts of fuel, including marine, aviation, construction, mining and energy.

Source: Reinsurance News