WTW to transform fleet risk management with new facility

WTW has launched a new Structured Auto Buffer London Excess (StABLE) facility to transform fleet risk management by providing a risk financing solution through ‘Swing Plan’ structures.

“This new offering is an innovative dedicated structured Auto Liability solution in the marketplace that supports organisations with managing fleet risks while rewarding them for comprehensive risk management practices and favourable loss performance,” WTW explains.

Through the WTW StABLE facility, clients can share in the risks and benefits associated with their fleet operations.

When losses stay below a specified threshold, clients may be eligible to receive a portion of their premium back. Additionally, they have the option to convert their policy to secure further returns.

If losses exceed the threshold, additional premiums are capped, ensuring a balanced risk-sharing approach.

Additionally, the facility provides customised terms and conditions, such as adjustments to premium structures that support cash flow, along with reinstatement options for policies that have reached their limits.

Although notable investments have been made in fleet safety and telematic solutions, WTW noted, many insureds are not seeing benefits from insurance companies in terms of traditional limit allocation and corresponding premium reductions.

StABLE provides clients with customizable insulation from a broader portfolio of pricing options. Additionally, its multi-year structure was created to ensure budget transparency and set clear boundaries for potential losses.

James Sallada, Head of Casualty North America at WTW, commented: “Our StABLE (Structured Auto Buffer London Excess) Facility is an innovative risk sharing solution that addresses concerns around restricted and/or increasingly expensive capacity.

The facility is yet another example of WTW’s client-focused broking specialisation, and it enables our team to quickly offer the broadest available terms and conditions, which can be tailored to meet specific balance sheet priorities for clients.”

The facility is primarily targeted for owners, lessors, and brokers of large or heavy fleets of any vehicle type, including trucks, buses, and concrete mixers.

Clients benefiting from this solution operate in a variety of sectors, such as delivery, construction, waste management, and public transport.

Jon Drummond, Transportation and Logistics Industry Leader and Head of Broking, CRB North America, WTW, added: “As the complexity of casualty risk continues to evolve, our approach to structuring capital needs to evolve as well. This unique solution extends leverage to clients and allows them to optimise their capital spend to better control total cost of risk in an inflationary environment, particularly with respect to premium spend and loss costs.”

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