Bonds....future use as a financial protection method?

This week I had my financial protection hat on, en route to Guernsey with Heather Haggis for a board meeting with our colleagues at the Independent Advantage Insurance Company Ltd (IAICL), one of only a handful of insurers licensed to write travel bonds.

As I sat in Gatwick Airport (enjoying a bacon sarnie and coffee in Wetherspoons…as you do!), I was granted with what is a rare commodity these days, some time to just sit and think and I reflected on the fact that IAICL was originally one of only a couple of insurers who stood steadfast during and post pandemic, by continuing to provide the industry with a critical bonding line. The option of contracting and taking an overly risk adverse approach was of course discussed, however the IAICL board remained committed to striking the right balance between competent underwriting, whilst always ensuring that we didn’t stifle businesses with overly and unwarranted burdensome security requirements.

In short, we backed and believed in the resilience of our bond holders and the industry as a whole and it’s fair to say that despite the enormity of the challenges posed, the industry exceeded everyone’s expectations in terms of how it navigated the ultimate of ultimate travel disruption scenarios. Needless to say we’re very happy with the decisions we took during those extremely challenging times.

So where are we now and what does the future hold for regulatory financial protection? Honestly….who knows! I’m not sure even the CAA have come to a conclusion on the best way forward despite record breaking responses to their call for evidence and consultation…….what I do know however is that, just like the industry which we love working in, bonding has proved to be a resilient and reliable (dare I say ‘trustworthy!) method of protection…..and despite what may or may not be coming our way in the future, I firmly believe that bonding will continue to offer travel businesses and the regulators a relatively simplistic, tried and tested method of protection, be that as a stand alone method or paired with client money segregation or insurance, and it’s for precisely that reason why IAICL board meetings remain positively focused on the future and how it can continue to support the wonderful and diverse businesses of our industry!

Whilst I’m in full flow, a nod towards our fantastic broker partners who are at the sharp end of discussions with our mutual clients and continually place business with us, year after year, after year…..thank you for your support….your contribution to our collective success is much valued and appreciated!

To find out more about more about the bonding and insurance services we offer please visit


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