RWTA Insurance Update, Key Outcomes

Over the past three years, RWTA has been working closely with Benjamin & Benjamin and Steadfast to investigate ways of reducing the ever-increasing cost of insurance for refrigerated warehouse and transport operators across Australia and New Zealand.

The original objective was to establish an industry Discretionary Mutual Fund (DMF), which required the collection and analysis of detailed insurance and claims data from businesses who volunteered their information. This lengthy process helped to create an industry's risk profile.

Following that analysis, it became clear that while insurance premiums remain a significant challenge for the industry, the frequency and size of claims across participating businesses are relatively low compared to the number of sites across Australia & New Zealand.

The frequency and severity of claims simply do not justify the complexity and cost of establishing a Discretionary Mutual Fund.

What is the Solution?

It was concluded that the better alternative would be to create a Master Industrial Special Risks (ISR) Insurance Policy, which can be established much more quickly, while providing a far more effective and commercially attractive solution for the cold chain sector.

The proposed Master ISR Policy will bring together refrigerated warehouse and transport businesses under a single industry insurance programme, allowing members to benefit from collective buying power rather than struggling to purchase insurance individually. By bringing the industry together into a unified portfolio, Steadfast can negotiate directly with leading global insurers to secure broader policy coverage, more favourable terms and conditions, specialist claims management and, importantly, lower insurance premiums. Current expectations are that participating businesses could achieve premium savings of at least 10% more than they will get buying a policy in currently, together with access to enhanced policy benefits that are often unavailable under standard standalone insurance arrangements.

RISK Management

Beyond the potential financial savings, one of the most significant advantages of the proposed programme is its focus on proactive risk management. Rather than simply responding when something goes wrong, participating businesses will have access to specialist risk engineers who understand refrigerated warehousing and transport operations. These experts will work alongside members to identify potential risks such as refrigeration plant failure, electrical faults, fire protection, stock deterioration, sprinkler performance and other operational vulnerabilities before they become costly claims. This not only assists businesses in reducing disruption but also helps strengthen the industry's long-term insurance position by lowering overall risk exposure.

Added Bonuses!

The meeting also highlighted several important areas where the Master ISR Policy is expected to offer broader protection than the existing ISR policies. These include improved options for refrigeration plant failure, deterioration of refrigerated stock, ammonia refrigeration risks, business interruption, power failures and more comprehensive consideration of the true time required for a business to recover following a major event. The emphasis is not simply on rebuilding a facility after an incident, but on ensuring businesses have sufficient protection until operations and customer revenue return to normal.

When will this be Operational?

Negotiations with insurers are already well advanced, with Steadfast currently working with a lead global underwriter to establish the programme framework. Subject to final negotiations, the Master ISR Policy will be offered through Benjamin & Benjamin Insurance Group Pty and is expected to be operational by the end of August 2026. Members will have the opportunity to join the programme as their existing insurance policies fall due for renewal. Approximately two months prior to your ISR renewal date, businesses who want to be insured under the Master ISR Programme will need to contact Benjamin & Benjamin Insurance Group Pty Ltd so that they can gather all the required information to ensure the most competitive terms can be negotiated on your behalf.

Importantly, this is only the beginning. While the initial focus is on property insurance, the intention is to develop a similar collective solution for liability insurance once the Master Property Programme is established, providing even greater long-term value to RWTA members.

This initiative represents one of the most significant member benefit projects undertaken by the RWTA in recent years. It demonstrates what can be achieved when the industry works collaboratively to address common challenges. We will continue to keep members informed as negotiations progress and will provide further updates as the programme moves towards implementation.

For those who would like to hear the discussion in full, the meeting recording is attached here