Insurance firm launches budget holiday cover

A NEW Dublin-based insurance broker has entered the Irish travel insurance market and aims to undercut competitors by up to 20%.

Blue Insurances said it would offer annual multi-trip travel insurance starting at €39 through 200 travel agents around the country.

Director Ciaran Mulligan said the company had struck deals with travel agents including Abbey Travel, Skytours and Joe Walsh Tours and would extend its product offering over the coming months.

Mr Mulligan also said Blue would offer a no-claims bonus, similar to motor insurance, on its travel policies. Customers who make no claim under their policy will be entitled to discounts in subsequent years.

"Blue Insurances is entering the market to bring new and more innovative products to the consumer. To date, consumers have had limited choice and cover has been somewhat restricted. We are in the market to change that," said Mr Mulligan.

Blue's product is targeted at holders of VHI and Bupa health insurance policies, but is also open to non-subscribers.

Mr Mulligan, who has worked in the insurance industry for almost 15 years and previously worked with Coyle Hamilton and KMT, said Blue's travel policies would be underwritten by British insurer Whitehorse.

The company claims to have sourced e3 million in existing business. Blue also plans to offer home, motor and pet insurance through brokers and direct to customers over the internet.

Mr Mulligan said the company would extend its reach to eastern Europe over the next year and planned to offer travel insurance to residents of Poland, Hungary and the Czech Republic, which he said was "virgin territory" that had been largely untapped by existing travel insurance providers.

The Irish travel insurance market is believed to be worth over €50m and has been growing at a rate of 25% a year over the past five years. The market has become crowded in recent years as more new entrants have taken advantage of the increase in the number of foreign holidays being taken by Irish residents.

Tour operators, travel agents, airlines, banks and health insurers have started to offer travel cover.