While the travel insurance industry uses Arkane language and small terms and policy sections, travel insurance is generally consumer-friendly, Mitchell said. « When you look at the metrics of the complaints, they are as low as the industry has done, there doesn`t seem to be much confusion, » he said. Accompanied by financial compensation, these regulatory agreements (RSA) have been accumulating rapidly since the end of 2017. As a result, the travel insurance industry is both the uncertainty of potential litigation and the persistent lack of clarity as to the practices it can pursue. The travel insurance industry exposes both the uncertainty of potential litigation and the continuing uncertainty about the practices it can pursue. Picture: Shutterstock.com. Travel insurers have tacitly resigned themselves to a group of state insurance commissioners on some common practices that have proved potentially inconvenient to consumers. Initially, consumers and travel agencies are unlikely to see any change in the products and prices offered by large insurers. However, industry representatives and others believe that an agreement with states regulating the travel insurance industry could, in the long run, free the sector from expanding its supply and from more aggressive competition. « Most of this affects us, and what we have to do with distribution, directly to the consumer or through resellers, » said an executive with an insurer who asked to remain anonymous. He predicted that there would be little direct impact on travel agencies.
« From where I`m sending, » Carnicelli says, « we`ve been a little frustrated by the way some [insurers] interpreted the rules » because it has caused inconsistencies in what the consumer went through when buying travel insurance. Indeed, the greatest immediate use of RSOs is the reduction of confusion for all parties, including travel insurance, their insurers and the distribution system (which includes agents, cruise lines, airlines and aggregator sites such as Squaremouth). At the same time, the National Association of Insurance Commissioners (NAIC) Travel Insurance Working Group is developing its own Travel Insurance Models Act, which uses the NCOIL model as the basis. His firm consults with non-insurance companies such as airlines, cruise lines, tour operators and travel agencies and has been involved in discussions with the two major organizations that are developing new model laws and national travel insurance laws. Much remains to be done to harmonize practices in the United States. While insurers have resigned themselves to the states, have also worked with legislators and regulators to develop a series of sectoral practices covering issues such as licensing and monitoring of travel agents (for example. B travel agencies), medical evacuations, cancellation exemptions (both « Cancel for Any Reason » and « Cancel for Specified Reasons »), covered by insurance coverage in the form of a set of support or cancellation fee exemptions, and the provision of flat-rate insurance coverage as part of a travel or travel package. « Nothing seems too embarrassing for what`s going on for travel agencies. Today, things prohibited by RSAs are generally not done, such as agents who charge a separate tax for insurance sales or consumer optimization sales. I don`t see anything flying giant flags. AsTA Executive Vice President of Advocacy Eben Peck noted that interprofessional organizations, insurers and regulators have been working together for years to « harmonize travel insurance sales » in all 50 countries.
« Everyone agrees that standards are good for everyone, » Peck said, and the RSA has been a step in the right direction.