Allianz v Revolut
Allianz is pursuing legal action against Revolut , demanding £10.4 million ($13 million), according to Law360. The dispute stems from Revolut’s supposed withdrawal from an agreement where Allianz provided travel insurance to customers of Revolut. 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.
According to Coverager Data, 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.
Moreover, there’s an ongoing issue highlighted by a tweet from Stewart Rawes concerning an insurance claim filed through Revolut’s service with Allianz before Cover Genius took over in October. Allianz disputes the accuracy of the insurance statement provided by Revolut.
Bottom Line: Embedded (insurance) disputes.