(and its predecessor organisation, APADA) has a long history of working to
deliver comprehensive and competitively priced insurance products for
businesses operating in the Australian fuel industry. This history includes the
development of an insurance business (under the OAMPS brand) more than 3
decades ago to accommodate the specific risk profile of fuel wholesale and fuel
retail businesses in Australia. This business was subsequently bought out by
Arthur J Gallagher.
recent times, ACAPMA members have raised concerns about the ever-escalating
nature of insurance premiums in the face of declining profitability and
increased compliance costs. Arguably, one of the central causes of this
situation has been the apparent absence of competitively priced products that
are specifically tailored to the needs of fuel businesses, leading to the
market dominance of a single player.
ACAPMA completed a comprehensive review of its member insurance offerings. During
this process, ACAPMA sought expressions of interest from three parties for the
provision of a member insurance offering in the future.
a comprehensive review of these submissions at its meeting in Sydney on 26 November
2019, the ACAPMA Board unanimously approved a proposal that will see the
introduction of a new insurance offering under the brand ACAPMA Insurance.
insurance will be powered by the largest insurance broker and risk advisor in the world, Marsh Pty Ltd
(Marsh), a business ofMarsh
& McLennan Companies (MMC), which operates in 130 countries around the
globe. More importantly, Marsh has over 2100 staff in Australia operating from
33 offices that are strategically positioned around the country.
Insurance arrangement will combine the market leverage and risk expertise of Australia’s
largest insurance broker – Marsh, a business of Marsh & McLennan Companies (MMC)
– with the detailed industry knowledge of ACAPMA, to deliver competitively
priced insurance and risk solutions that are specifically designed to meet the
needs of a variety of fuel businesses in Australia”, said ACAPMA CEO Mark
more than 130 years of collective experience, the ACAPMA Insurance team
will provide access to leading-edge risk and insurance solutions for members
and non-members alike”, said Mark.
of the most attractive aspects of Marsh’s proposal was their capacity as a
business of MMC to deliver more than just insurance products, at a time when
the nature of fuel transport and petrol convenience businesses is changing”,
will see Marsh and the broader MMC group work with ACAPMA to deliver a
comprehensive range of bespoke insurance products and risk support services in
areas such as:
- Strategic risk assessment
risk reviews and awareness training
health and safety programmes, including Return to Work services and claims
of Business Continuity Plans
- Asset valuations
won’t simply be saying to our members and the wider market that they should
‘trust us’ because we ‘know the industry’. Rather, we will be saying when your insurance
renewals come due simply give ACAPMA
Insurance a chance to beat the offering of your current insurer”, said Mark.
between ACAPMA and Marsh isn’t simply a ‘branding and sponsorship’ agreement.
The new arrangement – which will initially operate for a 5-year period – positively incentivises both organisations to grow ACAPMA Insurance with the goal of utilising a portion of the funds collected to reinvest in the industry via the enhancement of ACAPMA’s advocacy activity, industry training solutions and industry compliance products.
importantly, the proactive elements of this arrangement will allow the joint
identification of risk factors that may be driving up industry premiums over
time – and the subsequent development and implementation of industry-based solutions
that address these issues, with the ultimate aim of keeping insurance premiums
have successfully achieved this as an industry body once before”, said Mark.
with Marsh powering ACAPMA Insurance I am confident that it will be able
to provide comprehensive and competitively priced market offerings that meet
the risk needs of contemporary fuel transport, fuel wholesale, fuel retail, and
petroleum services businesses”, concluded Mark.
More information about the timing of the launch of ACAPMA Insurance will be provided early in the new year.