The current state of fleet risk for risk management in the aid and development space

The current state of fleet risk for risk management in the aid and development space

The current state of fleet risk and best practices for risk management in the aid and development space

  The past six decades have seen a rapid rise of globalization and aid and development organizations in particular are increasingly operating in harsh, unpredictable and often perilous environments. The many risks and road safety challenges in this line of work have long been accepted as part of a trade off in carrying out vital missions at the world’s frontiers. In a dynamic and continuously evolving world, new risks are constantly manifesting themselves, challenging organizational readiness and traditional risk mitigation approaches.

  Since 1947, Clements Worldwide has provided peace of mind to the international community through the supply of mission critical insurance protection to people, vehicles and assets in more than 180 countries. Clements Worldwide has since established itself as the leading global insurer of the aid and development vehicle fleet. Much as we have seen in other industries, fleet managers have acknowledged the ascendance of reputational risk as the single largest exposure they face in terms of likelihood and adverse impact. Similarly, our collaborative survey, Fleet Risk 360°, has also identified the different types of exposure to catastrophic losses that numerous fleet operators face as part of their daily work. Conducted in partnership with Fleet Forum, which boasts of the largest gathering of aid and development fleet managers and numerous other survey participants and experts from the fleet management space, the results of the Fleet Risk 360° survey have shown us that heightened risk and increased fleet exposure is the new normal for many aid and development organizations.

  However, Clements Worldwide is poised to adapt to this dynamic risk landscape. While insurance and risk management firms have largely focused on risk financing and transfer products, this report underscores the need for enterprise-level solutions that are not only concerned with financing losses but focus also on preventing them altogether increasing organizational resilience.

  The team at Clements Worldwide is proud to support AIDF at this year’s Disaster Relief Summit in November, which is a great opportunity for the aid and development industry to come together and share innovative tools, techniques and best practices for effective disaster relief. Clements has worked with global NGO clients for over 65 years to provide them with mission critical insurance solutions and risk management, ensuring that they are able to continue doing their important work every day and giving them the highest levels of financial protection.

In his remarks as part of AIDF’s panel on fleet management best practices, Dante Disparte, Clements Worldwide’s US Managing Director, will:

• Deliver a summary of principle fleet risk factors generated through the Fleet Risk 360° survey as it relates to organizational processes, fleet composition, fleet operation, financial resilience and risk management;
• Analyze their expected likelihood and impact and offer guidance on how these risks can be addressed;
• Share relevant industry case studies of enterprise-level solutions that have been successful for organizations operating in the relief and aid space.

  To summarize, new approaches to risk management in the aid and development sector are emerging, spurred by cross-sector collaboration. Agencies like UNHCR, a Clements client and partner, are establishing internal shared services for all facets of fleet management for their field operations, including chartering innovative solutions to fleet related risk. Specifically, UNHCR has developed internal reserving funds for predictable physical damage losses up to a certain threshold. Thereafter, the organization has the option, by way of a catastrophic back-stop, of transferring large losses to the private insurance market, whose depth and liquidity are important for shoring up financial resilience.

  The agency is adhering to minimally required local third party liability, while a global umbrella solution devised in partnership with Clements covers the agency’s owned, hired and non-owned vehicles for any difference in conditions and potential disputes. This model blends new approaches and goes beyond merely financing insured losses and aims to capture data over the long term facilitating proactive approaches minimizing risk.

  For more information please visit

Be part of the humanitarian aid and development community!

Register now to receive AIDF's newsletter with insights into latest trends, innovations and best practice in the humanitarian and development sectors