Actuary are a data and analytics platform serving acquirers and payment institutions within the global airline and travel ecosystem. They identified a need to provide analytics to support the default risk faced by acquirers supporting the travel industry. TMU Management, a managing general agent (MGA) collaborated with Actuary to provide Acquirer Chargeback Cover (ACC)—a regulated insurance product designed to protect acquirers from chargeback losses resulting from merchant insolvency.
By integrating TMU's solution into Actuary's analytics platform, acquirers can now combine transaction-level risk scoring with insurance-backed financial protection. This approach changes how financial institutions assess, price and manage chargeback exposure, offering options to reduce collateral requirements and creating a compliant framework for travel payment processes.
Actuary.aero is a technology-based analytics platform. They support acquirers, payment processors and financial institutions in risk assessment and management within the travel and airline sectors and wider travel industry. Based in Amsterdam, the company uses real-time transactional monitoring and merchant-level financial data to produce insights that support safer decisions for payment providers.
Actuary partners with acquirers across various regions, supplying information necessary for underwriting complex travel merchant accounts. The organisation aims to increase transparency in high-risk verticals while maintaining regulatory compliance and efficient use of capital. Through developments in data science and partnerships with insurance providers, Actuary continues to refine methods for quantifying and insuring acquirer and merchant risk.
Travel acquirers consistently face exposure to chargebacks following merchant failure. When a travel merchant offers future-dated services, such as flights or vacation packages, the acquirer becomes liable if the merchant cannot fulfil customer bookings due to insolvency. Traditionally, this risk was mitigated through cash collateral, rolling reserves, or standby letters of credit. These measures are resource-intensive and can limit liquidity and business growth. Increased post-pandemic volatility led payment schemes like Visa and Mastercard to introduce more stringent security requirements and raise monitoring thresholds for travel merchants.
Actuary's clients required a solution that met regulatory and scheme risk standards while improving operational flexibility. Conventional insurance products were often not aligned with acquirer risk models or payment data, revealing a gap between financial protection and practical implementation. A regulated, data-integrated and scalable mechanism was needed to supplement or replace traditional collateral, maintaining compliance and timely settlement.
TMU Management worked with Actuary to incorporate Acquirer Chargeback Cover (ACC) in the Actuary.aero platform. ACC is an insurance solution that addresses losses from chargebacks caused by merchant insolvency, allowing acquirers to maintain financial stability without excessive collateralisation.
The integration uses Actuary's data capabilities to adjust insurance coverage according to merchant risk levels. As merchant profiles change, coverage automatically adapts, delivering responsive and cost-efficient protection.
Key features include:
This collaborative effort creates an environment where analytics and embedded insurance streamline what was previously a fixed, capital-heavy process into a dynamic, data-driven risk transfer solution.
Implementation was carried out in phases, involving collaboration between Actuary's technology team and TMU's underwriting and compliance personnel. A live data exchange protocol facilitated real-time sharing of merchant exposure and transaction metrics, enabling automated allocation of insurance coverage.
Steps included:
The main challenges involved aligning data detail between payment processors and insurers and verifying coverage events according to scheme guidelines. Post-resolution, the integration provides a scalable, compliant support structure for multiple stakeholders globally.
The partnership improved acquirer flexibility in managing travel-related risk. Participants reported decreased reliance on static collateral, which released liquidity for acquirers and their merchants. By combining Actuary's monitoring with TMU's ACC, acquirers are able to demonstrate sound risk mitigation in line with Visa and Mastercard requirements, helping maintain compliance while remaining competitive in the travel industry.
Initial feedback indicates reduced capital commitment, enhanced underwriting transparency and swifter onboarding for higher-risk travel merchants. Both organisations have expanded their positions in the insurance and payments sectors by providing data-driven financial risk solutions.
The cooperation between Actuary and TMU Management highlights the effectiveness of combining data-informed risk analytics with regulated insurance capacity. The initiative shows how acquirer risk management can shift from reactive measures to proactive, data-led strategies. Essential considerations include seamless data integration between acquirers and insurers, transparent exposure modelling and adaptable insurance structures.
Moving forward, TMU and Actuary plan to extend this model to address additional risk areas, such as prepayment risk for airlines and operators, and to encourage broader adoption among high-risk merchants. The collaboration establishes a new approach in which acquirer protection is treated as a scalable tool for payment systems.
If you need insurance that’s built around how your business really works, TMU Management is ready to help. Our team is here to explore your challenges, understand your risk exposure and build a bespoke solution that fits your strategy.
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