TMU Management, an MGA specialising in financial protection for the travel sector, aimed to improve underwriting flexibility by implementing mechanisms to secure client funds that are scalable and cost-effective. Traditional bonding and insurance models typically approached financial security as a binary decision—either full insurance or full collateralisation—which limited the ability to customise solutions based on each travel company's risk profile.
Through a collaboration with PT Trustees, an independent trustee and escrow services provider, TMU incorporated trust accounts as an internal security mechanism within its underwriting framework. This approach allows TMU's underwriters to adjust coverage and pricing according to specific needs, utilising trust structures to manage portions of risk while maintaining insurance as the regulatory requirement.
This partnership integrates PT Trustees' trust administration capabilities with TMU's insurance operations, forming a model intended to safeguard consumer funds and meet underwriters' risk thresholds. The outcome is that travel businesses may experience reduced costs, more timely underwriting decisions and transparent financial management aligned with regulatory expectations.
PT Trustees is a UK-based trustee and escrow service provider serving both regulated and unregulated businesses across multiple sectors. PT Trustees manages client monies according to regulatory and fiduciary standards, offering transparency and daily reconciliation. In the travel industry, PT Trustees has created systems to automate tasks such as reconciliation, fund release and drawdown approval. Its operational objective is to support governance and secure money management through technology-enabled processes.
TMU Management's underwriting approach seeks to price and structure protection in accordance with actual risks presented by travel businesses. Conventional industry practices typically led to either exclusive reliance on insurance or on extensive collateral requirements, often imposing significant costs. This binary structure limited flexibility for both underwriters and clients. Some businesses had robust governance and client money management practices that justified lower premiums, while others required additional safeguards. TMU sought to introduce a method to reflect these differences more dynamically.
Traditional trust arrangements, despite their effectiveness, were seen as operationally demanding due to manual oversight, slow fund movements and complex reconciliations. These issues hindered scalability. TMU required a trust partner capable of providing efficient, transparent and data-driven solutions for underwriting decisions at scale. The goal was to integrate trust accounts as an internal security mechanism adaptable to each client's circumstances without disrupting regulatory or operational workflows.
For higher-risk scenarios, a trust-managed account can mitigate greater exposure, supporting underwriting confidence. For lower-risk cases, this approach can enable premium reductions while maintaining security. In all situations, the insurance policy remains the primary regulatory instrument and the trust serves as a supplementary measure.
Key aspects of the collaboration include:
This system allows trust and insurance to function together, providing greater control and customisation for both underwriters and clients.
The project began with the development of an operational framework integrating TMU's underwriting with PT Trustees' trust platform. The aim was to ensure seamless setup, monitoring and reconciliation of trust accounts within TMU's internal systems.
Implementation steps included:
Challenges involved coordinating banking integrations and ensuring compatibility between trust and insurance documentation for audit purposes. PT Trustees' data infrastructure supported timely onboarding and oversight of multiple trust accounts. This arrangement now forms a core part of TMU’s underwriting operations.
The cooperation between TMU Management and PT Trustees introduced an alternative model for travel underwriting. With trust accounts as internal security, TMU offers customised pricing according to the financial practices of individual clients. Operationally, PT Trustees' digital systems enable TMU to manage a growing portfolio without detracting from oversight or compliance. The outcome is a hybrid security model incorporating both insurance and trust components and utilising data-driven processes.
"Our work with TMU Management demonstrates how contemporary trust structures can be integrated into insurance frameworks. Combining real-time data with operational accuracy, we have supported TMU's adoption of trust accounts, contributing to flexibility and financial security for travel businesses."
Traditional fiduciary structures can be adapted through technology and integrated into insurance processes. Takeaways include the significance of data transparency, interoperability between financial and insurance systems, and the necessity for adaptable risk management tools reflecting the diversity of client businesses.
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.
Thank you for your interest in TMU Management. If you have any questions about our company or our services, please feel free to reach out via our contact form, or using the contact details below. We look forward to connecting with you soon!
