TMU Management, a data-driven insurance intermediary specializing in travel, has issued a warning to the travel trade, cautioning of potential increases in insurance rates for Package Travel Regulation compliant coverage following the recent flooding chaos in Dubai.
Sami Doyle, CEO & Co-Founder of TMU Management, highlighted the unexpected operational risk posed by flooding in a desert environment, emphasizing that despite this being the worst rain in 75 years in the UAE, underwriters are likely to remain cautious. He noted that while it’s too early to quantify the extent of rate hikes, sellers should anticipate notable increases, particularly for Dubai-related products.
To address these likely hikes, TMU Management recommends proactive engagement with insurers, initiating conversations about potential rate increases well in advance of policy renewals. They advise considering alternative insurers, factoring potential cost increases into future pricing strategies, and evaluating exposure levels to specific destinations.
Moreover, Doyle stresses the importance of accurate data reporting to insurers, particularly concerning the limitation of exposure to risks associated with sudden shocks or geographical events. This data is crucial in demonstrating risk management practices and minimizing the impact of adverse events on insurance premiums.
In light of potential fluctuations in insurance rates driven by unforeseen events like the Dubai flooding, proactive risk management and strategic planning are essential for travel providers to navigate the evolving landscape of trade insurance effectively.