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Markel launches new “fuel price” insurance


January 12, 2005   by Canadian Underwriter


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Trucking insurer Markel Insurance Co. of Canada has devised a new product to hedge against volatile fuel prices.
“FUELogic” allows long-haul truckers to lock in the “maximum” price they choose to pay for fuel from a number of options, to be reimbursed by the insurer if fuel prices rise in excess of that maximum.
“The recent high volatility in diesel prices poses cash flow challenges for carriers of any size. In fact, large increases in fuel prices has been a primary cause for recent consolidation and bankruptcies among Canadian owner/operators and small fleets,” says Mark Ram, president and CEO of Markel.
There are three “price points” established by the program, and reimbursements will be made automatically on a monthly basis. Not only does the program temper fuel price volatility, but it also helps truckers avoid passing along fuel surcharges to their clients.


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