Travel Insurance Regulatory Settlement Agreement

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Indeed, the main immediate utility of RSAs is to reduce confusion for all parties, including travel insurance companies, their insurers, and the distribution system (which includes agents, cruise lines, airlines, and aggregator sites like Squaremouth). While the travel insurance industry uses obscure language and small policies, travel insurance is generally consumer-friendly, Mitchell said. “When you see the complaint metrics, they`re as low as the industry has done, there doesn`t seem to be much confusion,” he said. Travel insurers have silently and silently agreed with a group of public insurance commissioners on some common practices that regulators see as potentially problematic for consumers. “From where I`m sitting,” Carnicelli says, “we were a little frustrated with the way some [insurers] interpreted the rules,” because it caused inconsistencies in what the consumer experienced when buying travel insurance. As a first step, it is likely that consumers and travel agencies will not see any change both in terms of the products and the prices offered to them by the major travel insurers. However, industry leaders and others believe that securing agreements with states that regulate the travel insurance industry could, in the long run, allow the industry to expand its offerings and compete more aggressively. The travel insurance industry is responsible for both the uncertainty surrounding potential litigation and the ongoing ambiguity about the practices it can pursue. Photo: “Most of it is about us and what we have to do with distribution, directly to the consumer or through resellers,” said an executive at an insurer who wanted to remain anonymous.

He predicted that there would be little direct impact on travel agencies. The U.S. Travel Insurance Association (UStiA) said it supports the development of a MODEL NAIC law similar to the NCOIL proposal, which UStiA believes will “modernize and adapt a regulatory approach that recognizes the unique nature of travel protection products,” said Megan Cruz Freedman, UStiA`s executive director. More needs to be done to harmonize practices in the United States. While insurers have united with states, they have also worked with lawmakers and regulators to find a number of practices dealing with issues such as licensing and oversight of travel retailers (e.g.

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