Paratus & Partners has announced the issuance of the world’s first jet fuel insurance policy for a Southeast Asian airline client whose name cannot be disclosed due to confidentiality agreements.
As the ongoing global uncertainty continues to drive volatility in jet fuel prices, the airline engaged with Paratus & Partners to leverage energy markets expertise using insurance to cap jet fuel costs, protect margins and stabilise their balance sheet. The insurance product is underwritten by Paratus Aviation Insurance Limited, the Guernsey licensed and regulated (re)insurer.
Garwyn Lam, broker at Paratus & Partners, said: “We are thrilled to have provided the world’s first ever jet fuel price protection policy for one of our Asia-based clients. It’s an excellent testament of our commitment to provide exceptional energy price risk broking expertise to the market.
This insurance policy mitigates one of the most volatile operational costs in the airline industry. It will be a game changer for how airlines manage jet fuel price risks and a significant innovation shift for the aviation industry. The use of insurance is a cost-effective, additional tool for balance sheet stability and competitive advantage”
The Paratus & Partners team includes some of the most established specialists in the maritime, aviation and energy sectors, operating within a FCA regulated and licensed broking entity.
