New travel insurance product will compete with bank products

Saba Taye | January 29, 2010

Thomas Cook Financial (TCF), a subsidiary of Thomas Cook Canada, will soon offer brokers and carriers a product to compete with banks and direct writers with the launch of a new travel insurance product.

The product, which offers travelers medical, trip cancellation and interruption, among other services, will initially be sold through TCF websites and through third-party call-centre representatives.

But Kevin McAdam, director financial services for Thomas Cook North America, said there are plans to sell this product through Thomas Cook retail outlets and through third-party vendors, such as carriers and brokers.

According to McAdam the commission levels for third-party vendors will be competitive based on industry standards.

“Because of contractual constraints I cannot, currently, sell this through Thomas Cook retail stores,” McAdam said. “[But] We plan on offering [this product] through third party vendors in August.”
 
Some of the key features of the new product are:

• All insurance plans offer a 10-day money-back guarantee.
• $2,000 (CDN) coverage in the event of a tour or cruise cancellation.
• Emergency medical insurance coverage of up to $5 million.
• A cap of $350 a day for travel and meal expenses
• Concierge services include:

1. Covers the expense of bringing one family or friend to the travellers bedside, if hospitalized out-of-country.
2. Arranges childcare, while ill, if required.

• $500 (CDN) benefit for passport or travel visa replacement
• Up to $500 coverage of lost personal items.
• Up to $500 in pet return.
• Up to $500 in mislaid luggage.
• Up to $100 in lost money.
• Up to $200 in lost foreign currency acquired through TCF.
• TCF offers a 10 day money back guarantee for all insurance products
• And TCF offer a quick claims settlement guarantee, with simple claims settled within five business days.

While the plan is to role out the product—with a nation-wide media campaign—and sell through a toll-free number and off a website, McAdam is keenly interested in expanding into Thomas Cook retail chains and sales through carriers and brokers.