NIB travel insurance pause

INSURANCE giant nib has revealed that travel insurance sales in Australia and New Zealand will be paused from 05 Oct as current underwriting arrangements with the AXAowned XL Insurance Company SE, Australia branch comes to an end.

The company confirmed no traveller who purchases insurance cover before 05 Oct will be impacted by the hiatus, with CEO Mark Fitzgibbon stating nib is in the process of sourcing new underwriting agreements in a bid to deliver appropriate costing that sets the business up for future growth opportunities.

“Refreshing underwriting agreements on a regular basis helps ensure we deliver optimal and sustainable outcomes both commercially and for our customers,” he said.

“The ending of current arrangements is obviously disruptive but we will emerge in better shape as travel and market conditions recover.

“We plan on selling travel insurance to Australian and New Zealand residents as soon as possible to support customers,” Fitzgibbon added.

The decision will not impact travellers in other markets, who currently account for roughly three quarters of the company’s total travel insurance income.

Nib released its full year results last month (TD 23 Aug), with the report laying bare the significant financial impact that travel disruptions have had on its travel insurance divisions, with revenue for the brands dropping by 74.1% on the previous year.

The insurer also conceded memberships had fallen by close to 7% during the period, while travel claims also spiked.