Management Consulting

Aon addressed the increasing complexity of motor risk for operators of vehicle fleets, where trade, technology, weather, and workforce megatrends create both opportunities and risks. Clients faced challenges with hidden or unforeseen risks that negatively impacted their balance sheets and eroded profit margins. The rising costs associated with commercial motor premiums, which are a significant part of risk budgets, were exacerbated by claims inflation for motor accidents exceeding 14%. Additionally, the transition to net zero and the growing use of battery electric vehicles introduced new capital and asset risks. To tackle these issues, Aon implemented a data-led approach to identify and quantify risks associated with motor total cost of risk (TCOR). This involved creating a comprehensive model of TCOR that communicated the interconnectivity of various functions and their associated costs. Aon’s tailored solutions included the development of strategies that impacted the entire TCOR, utilizing their Client Leadership model to enhance management of drivers, fleet operations, and executive functions. Aon’s innovative tools, such as the Motor Risk Insights tool, aggregated telematics data from major providers into a consistent risk score, allowing organizations to track risk trends and measure the effectiveness of risk improvement strategies. The Fleet Risk Profiler enabled benchmarking against best-in-class standards, supporting continuous risk improvement. Furthermore, Aon provided risk and claims consulting services, leveraging technical expertise to optimize claims management strategies and finance motor TCOR through tailored solutions based on clients' risk appetites. As a result of these initiatives, clients experienced reduced accident frequency, leading to lower claims, decreased off-road time, and minimized training costs. This comprehensive approach not only enhanced safety but also unlocked profitability and investment opportunities for businesses operating large commercial fleets.