BIDVEST Insurance informed
travel agents earlier this
month that it would withdraw
its travel insurance offering
from the retail travel market,
effective close of business,
September 8. The move
follows a withdrawal by AIG
which TNW understands may
be temporary.
Customers already covered
by Bidvest Travel Insurance
who are yet to travel, will
continue to enjoy protection.
In its notice to withdraw,
Bidvest cited travel
insurance being provided
as an embedded benefit
in bank cards and medical
aids. “Consequently, there
are specific conditions
for the manner in which
travel insurance needs
to be sold. As a result of
these requirements, and
to ensure compliance with
legislation, the demand on
travel agents has increased
tremendously,” the company
said in its statement.
Club Travel ITC, Janet
Naylor, is concerned that
there could be a domino
effect, with more travel
insurance companies opting
to go direct to clients. She
points out that this means
the insurance companies
would not have to pay
agents commission, but
argues that travellers
will not purchase travel
insurance unless pushed to
do so by travel agents.
Commenting on the
complimentary cover on
credit cards, Anriëth Symon,
head of Travel at Zurich
SA, also points out that
travellers assume this is
sufficient cover. “Often this
only covers minimal medical
costs,” she says.
“It’s always a pity to
see competitors withdraw
from the market, said
Jason Veitch, head of
travel insurance at TIC.
He added, however, that it
was understandable, taking
into account the operating
conditions under which
insurers find themselves.
“The trading environment in
the travel agent market is
under pressure because of
lower volumes,” said Jason.
TNW understands Bidvest
Travel Insurance may
continue using different
distribution channels.
