Allianz is suing Revolut for £10.4m over axed travel insurance deal
Hey FinTech Fanatic!
First, a spotlight on my recent exploration: Airbnb's financial performance in 2023. Astoundingly, they've raked in a whopping $529 million in interest income in just three quarters. This begs the question: Is Airbnb morphing into a FinTech powerhouse right under our noses? Your thoughts are eagerly awaited!
Continuing this theme, let's revisit my previous analysis where I delved into whether the Starbucks App is more than just a convenient coffee companion, but actually a stealth banking app.
Now over to the biggest news update today:
Allianz is suing Revolut for £10.4m, alleging that the neobank breached its obligations under a deal it struck in 2021 for Allianz to provide travel insurance to Revolut customers.
The lawsuit claims that Revolut breached the contract by moving its customers to a new insurance provider and eventually terminating the agreement. Allianz asserts this breach prevented them from invoicing and receiving further payments.
Starting April 2022, Allianz Partners became the global travel insurance provider for Revolut. This service was available to Revolut’s Premium or Metal Account holders in 31 markets across the European Economic Area and the UK.
These account holders had access to various travel insurance benefits directly through the Revolut app, including coverage for overseas medical emergencies, trip cancellation, interruption, lost or delayed baggage, and winter sports.
Additional features include a 24/7 medical assistance hotline and other benefits from Allianz Partners. The Premium plan covered children or dependents up to age 17, while the Metal plan offered extended travel liability coverage and car hire excess.
However, that has since changed.
According to its site, Revolut is currently arranging collective travel insurance for its subscribers through Cowen Insurance Company and Cover Genius .
Cowen Insurance, registered in Malta and regulated by the Malta Financial Services Authority, is the underwriter responsible for handling and paying out insurance claims.
Cover Genius, located in Amsterdam and regulated by the Dutch Authority for Financial Markets (AFM), acts as the policy administrator. Claims and payments are managed via the Xcover platform.
Have a great start to the week and I'll be back with more FinTech news tomorrow!
Cheers,
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