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Global Default Insurance for IATA Accredited Travel Agents

Global Default Insurance is a flexible alternative to bank guarantees and bonds which IATA will accept from a travel agent as part of its accreditation process.

Specifically created for IATA (International Air Transport Association) accredited travel agents, Global Default Insurance offers a financial security alternative as part of IATA’s NewGen ISS programme.

What is Global Default Insurance?

A GDI limit is a flexible alternative to bank guarantees and bonds for travel agents. IATA will accept a credit limit provided on a travel agent issued from Euler as part of its accreditation process. Individual agents may, on a voluntary basis, choose to request an approved limit under IATA’s insurance policy to satisfy their financial security requirements with IATA.

Under IATA’s risk management framework, GDI will allow agents to amend the level of accreditation in a relatively quick time frame and consequently raise their capacity for cash sales. GDI requires just one annual fee plus any locally applied taxes, collected through IATA, with no collateral requirement from a travel agent‘s business; thereby freeing cash flow and offering new growth opportunities.

For airlines, GDI aims to provide reliable coverage that increases the certainty of claims in the event of a default.

IATA has selected Euler Hermes, a provider of credit insurance services, to underwrite the GDI policy for IATA under which IATA is the insured party. The product has been developed by Euler Hermes in conjunction with leading global brokers, including Marsh.