NIB Holdings Limited (ASX: NHF) announced it is pausing travel insurance sales to Australian and New Zealand customers.
NIB pause in offering travel insurance
The company said that it will be pausing travel insurance sales to Australian and New Zealand residents from 5 October 2021. The pause will apply to all its brands including whitelabel partners.
NIB said that this pause is due to underwriting arrangements coming to an end. The company is looking for new underwriting arrangements across its domestic and international markets that are cost effective and support future growth plans.
NIB Managing Director Mark Fitzgibbon said:
“Refreshing underwriting agreements on a regular basis helps ensure we deliver optimal and sustainable outcomes both commercially and for our customers.
“The end of current arrangements is obviously disruptive but we’ll emerge in better shape as travel and market conditions recover.”
The insurance business said that the pause will not impact current travellers or any travel insurance already purchased before 5 October 2021.
The company didn’t say when travel insurance will be back on the menu, stating that it plans to resume as soon as possible.
In the FY21 result NIB said that its travel insurance business remains challenged by the ongoing COVID-19 impacts.
What about the international customer base?
NIB said that travel insurance from international sources currently accounts for over 75% of its travel insurance sales. This portion of the business will be unaffected.
Management said that the pause in sales to Australian and New Zealand residents will not have a material financial impact on the NIB Group.
