Aon has said that this insurance program is aligned to the BAE Systems's five-year business planning
BAE Systems, a defense, security and aerospace company, has signed a five-year insurance deal through its insurance broker Aon and with its partner insurers.
Aon has said that this insurance program is aligned to the BAE Systems’s five-year business planning and budgeting cycle and ensures long-term cost certainty at a time when premiums are predicted to increase in 2009.
The insurance program for BAE Systems provides certainty of cover and pricing for property and general liability risks with significant capacity for catastrophes, including earthquake and windstorm, which traditionally renew on an annual basis, according to Aon.
Trevor Young, Aon’s strategic account broker for BAE Systems, said: BAE Systems deserves credit for its commitment to nurturing insurer relationships to meet the wider business goals. The deal is key to supporting the company’s defined financial strategy and is a quantum step away from the annual burden of the renewal process. The placement of the insurance program also comes at an opportune time as we enter a difficult market cycle that could see premium increases.
Paul McDonald, director of insurable risk services at BAE Systems, added: Our partnership evolution with insurers and Aon means we’ve achieved absolute cost and capacity certainty, removing volatility in our insurance program. This is critical for our businesses given the long-term nature of our contracts.