Travel Insurance

The Travel Insurance Rate Filing Instructions detail specific requirements unique to submitting a travel insurance filing. These revised instructions apply to travel insurance rate filings, which are submitted under the NAIC type of insurance (TOI) 9.0: Inland Marine with the sub-TOI of 9.0009: Travel Insurance. 

Rate filings received without complete information will be deemed incomplete pending submission of all required information. Filings will be disapproved if requested information is not submitted within 30 days of request.

Insurers are required to submit filings electronically through SERFF. Any filing of rates for travel insurance must include the following information:

A. Actuarial Memorandum

    Provide a detailed description of the rating methodology and exhibits provided. The purpose of the Actuarial Memorandum is to enable the reviewer to understand and readily identify the manner in which each of the exhibits provided supports key elements of the company’s rate proposal.

B. Rating Variables

    Provide definitions of all rating variables and coverage options used in the manual and complete, objective documentation for how the factors will be applied to each policy.

C. Actuarial Support

    Provide full actuarial support for all rate factors including loss and expense data. Include all assumptions that significantly impact the rate charged to the customer such as expected average distributions across rate factors and expected average trip value for each product. If rate indications are materially affected by a complement of credibility, provide the basis for this complement. If the complement is based on competitor data, provide documentation of such.

D. Distribution Channels

    Demonstrate that rates are reasonable across distribution channels (e.g. online vs. membership vs. retail customers). If rates do not vary, provide support that a uniform rate is justified. If channels are rated separately, demonstrate rates vary appropriately based on expected losses and expenses.

E. Rating Examples

    Provide rate calculation examples for various customer characteristics and coverage options so the analyst can recreate the rates using the rate manual.

FAQs: COVID-19 and Travel Insurance