Ready for take-off: TravelCard set for Australia restart
TravelCard says its broker-focused Australian operations will resume travel insurance sales in the second quarter after the business entered exclusive negotiations for an underwriting arrangement with Guild Insurance.
The business has been in “hibernation” since October 2020 in response to the pandemic, with activities restricted to servicing in-force policies and claims.
insuranceNEWS.com.au has previously reported TravelCard, part of UK-based PassportCard Group, was working to resume travel insurance sales in Australia.
CEO Peter Klemt told insuranceNEWS.com.au today the business is sticking to its “broker-first” distribution strategy and will look at other channels, including direct sales, at a later stage. The plan is to start with leisure travel products, followed by corporate travel some time in the fourth quarter.
“If anything, we’re doubling down on our broker focus,” Mr Klemt says, when asked why the broking channel is central to TravelCard’s business model.
He says the value of advice, especially when it comes to travel insurance, has become more important after the pandemic.
“There are more people buying travel insurance for their international holidays now than ever before,” Mr Klemt says.
“In that space where people are looking for quality cover, brokers play a critical part in the insurance market in Australia and therefore we see this as an additional revenue stream for many brokers because traditionally they have not been involved with leisure travel.”
Mr Klemt says there will be a soft launch for TravelCard at the Steadfast Convention in March. The Steadfast event, which will be held in Perth from March 26-28, is the largest general insurance conference in Australia.
There are plans to also engage with other broking networks and groups, Mr Klemt says.
“We’ll look to talk to all brokers, many of which we were already engaged with prior to covid so we will be looking to rekindle all of those relationships and get things happening very, very quickly.
“The market can expect to start hearing from us from mid-March onwards as we get on with it.”
He says TravelCard has designed its products to cover for covid-related risks.
“From a broker’s perspective, we understand that’s critical. And that’s what they’ll see as we launch and release our new product disclosure statement and policy wordings,” Mr Klemt says.
He says TravelCard will commence “exclusive” negotiations with Guild Insurance now that the two partners have signed a heads of agreement.
“Once the formal agreement is signed it will be for many years. It will be a long term agreement,” Mr Klemt says. Before the “hibernation”, TravelCard policies were underwritten by Hollard.
Guild Insurance GM Insurance Portfolios Scott Simmons says TravelCard’s “innovative proposition” is truly unique and has the potential to be a market leading solution.
“Thanks to the pandemic, travellers are more aware than ever of the need for travel insurance and their expectations have also changed, with some level of cover for Covid-19 disruption now the norm,” he said.
On TravelCard’s long-term goals, Mr Klemt says the aim is to “take a significant share of the market but we understand that will take time”.
