NAIROBI, Kenya, Jun 29 – UAP Insurance has developed a new cover that specifically targets travel agents.
UAP Managing Director James Wambugu unveiled the Default Insurance Policy during the Kenya Association of Travel Agents (KATA) 30th anniversary celebration and annual general meeting held over the weekend in Naivasha.
It is a requirement for all agencies that are members of the global International Association of Travel Agents (IATA) to take out an insurance policy against the potential loss of proceeds from sale of air tickets.
Mr Wambugu said that UAP had designed the product after assessing the requirements of local travel agents and holding consultations with KATA. He explained that travel agents had previously gone for bank guarantees in order for them to obtain a stock of air tickets from airlines, but this had proved expensive and cumbersome.
“Being in the business of managing risk we feel better positioned to provide an alternative solution to this problem,” said Mr Wambugu adding that UAP had also initiated cooperation with KATA member agencies to act as outlets for travel related insurance products.
Noting that time had come for travel agents to reinvent their businesses for the changing environment, Mr Wambugu said that they were in a unique position to distribute policies relevant to the travel industry such as travel insurance.
“This way they will help in growing penetration of insurance and also gain some alternative revenue,” he added. They would also be able to leverage their position and network to educate air travel customers on the need for travel insurance which is essential even when one has a life cover.
He said that a time had come for travel agents to get into partnerships that would leapfrog the present business challenges including the erosion of traditional revenue streams.
He added that KATA members and UAP made the move in a bid to add more value to their customers. “Even as they offer our product, we will support then fully to help them achieve their goals including marketing to their customers,” said Mr Wambugu.