Management Consulting

ABConnect faced significant challenges in managing their logistics insurance, particularly due to inconsistencies in coverage across different locations and departments. Traditionally, logistics personnel arranged insurance only for their specific management areas, leading to variations in coverage based on the handling location of goods. This resulted in issues such as gaps in insurance arrangements and overlaps in coverage, complicating risk management. To address these niche issues, Aon implemented a tailored solution through the Aon Global Stock Throughput Program. This program was designed to provide seamless insurance coverage for goods during transportation and storage, ensuring that coverage remained consistent regardless of location. The program was customized to fit the specific logistics realities of the client, allowing for a unified purchasing approach within the group, which streamlined the insurance arrangement process. The results of this tailored solution were significant. The Aon Global Stock Throughput Program offered broader coverage than traditional insurance arrangements, eliminating the need for discussions about which policy would respond to an incident. It also reduced the time and effort required for negotiating multiple insurance policies, leading to more efficient operations. Additionally, the program featured lower deductibles and a single rate applied to the actual annual sales amount, providing a more rational insurance premium structure. Overall, the implementation of this program not only enhanced coverage but also improved operational efficiency and reduced costs for ABConnect.