NewGen ISS – Global Default Insurance
With Global Default Insurance, NewGen ISS offers a new choice of financial security.
Global Default Insurance is an optional form of financial security for travel agents that further mitigates airline risk in the case of an agent’s financial default.
Global Default Insurance (GDI) is an optional new type of financial security for agents, offered by Euler Hermes, a leading provider of credit-risk insurance. GDI consists of a global default insurance policy, held by IATA on behalf of Billing Settlement Plan (BSP) participating airlines, under which agents can request coverage corresponding to the amount of financial security required by IATA. Global Default Insurance will be available to agents in addition to those financial securities currently acceptable under IATA Resolution 850p. GDI is not intended to replace other security types, including local default insurance programs (DIPs).
The intent of introducing GDI is to give agents greater flexibility and choice of financial security, while ensuring strong and reliable coverage for airlines which provides certainty of claims in the event of a default.