Travel agencies run out of policies because they are “too risky” for insurers

Insurers no longer want to insure travel agencies, believing it to be an excessive risk for which it is currently not possible to provide reinsurance, they told the N1 portal of the Association of Insurers of Serbia. Let us remind you that valid licenses for travel agencies expire on Thursday, and to obtain new ones, they must have travel guarantees.

The Insurers Association notes that this is an unattractive and profitable job for insurers, which, as they say, follows from the fact that only a few insurance companies take care of it. They also point out that the majority of travel agencies have not paid insurance premiums for policies currently in force to insurers, practically since the beginning of the crisis caused by the coronavirus.

“There is no joint decision or agreement of the insurers to leave the business, but it is individual decisions of specific companies that deal with this business,” said the Association, adding that travel agencies and insurance companies are partners in the business of issuing longer travel guarantees. since a decade.

The Ministry of Commerce, Tourism and Telecommunications will also participate in the resolution of the dispute between insurance companies and travel agencies, which is also considering the issuance of bank guarantees, as a model to provide travel guarantees at the time of concluding tourist procedures. .

“It is quite unusual for insurance companies to inform agencies three days before the expiration of current licenses that they will not provide this type of service, which justifies it with a high degree of risk. The essence is that insurance companies they do risk assessments for each agency and do business with those agencies, which they deem stable and solvent, ”said outgoing minister Rasim Ljajić, adding that the Ministry will not revoke the agencies’ licenses, because he hopes the problem will be resolved in the next few months. next seven to ten days.