IATA Financial Criteria Update
ASATA’s hopes to submit the proposed amended financial criteria for this BSP region to the PAConf meeting taking place this week in San Diego, 16 October have unfortunately been dashed.
The stumbling block is the proposed Default Insurance Product (DIP), which makes up a part of the submission, as a result of the product policy document submission to IATA does not comply with the IATA Global Policy Template. As a result, an independent local legal review has been initiated to ensure legal compliance with South Africa legal jurisdiction requirements. This review process was finalised at the beginning of September 2014 and IATA is now waiting for the DIP provider to review the comments and proposed amendments with its reinsurer.
On receipt of the feedback and/or acceptance of the proposed amendments to the policy document, IATA will be able to to proceed with the formalisation, subject to no dramatic changes to the product structure and terms and conditions. While all efforts are been taken to expedite this process, IATA needs to ensure that there is a a comprehensive review and compliance of the policy as it relates to this form of agency financial security.
On acceptance we will not wait for the next PAConf to take place, but rather we will request for a mail vote on the proposal.
ASATA is obviously frustrated and disappointed by this latest delay and although it might seem to all that IATA are being difficult. We have it on good authority that they have been caught out time and again with insurance products that don’t deliver. IATA thoroughly looks at the ability of the local insurer and re-insurers and that they meet IATA’s financial requirements.