IATA is introducing a new type of financial security in the form of Global Default Insurance (GDI). The Insurance is optional and is in addition to those financial securities currently acceptable under IATA Resolution 850p. It is not intended to replace or exclude other security types, including local default insurance programs (DIPs).
GDI consists of a global default insurance policy brokered jointly by Marsh and Aon to Euler Hermes, a global credit insurance provider and subsidiary of the Allianz Group. Any Agent may, on a voluntary basis, seek coverage under GDI for the corresponding amount of financial security required by IATA.
GDI has been developed and introduced with the aim of offering agents greater flexibility and choice when required to provide IATA with a Financial Security. It presents a cost effective and flexible alternative to bank guarantees and other types of security. (Note, all current Financial Security types under Resolution 850p will continue to be available).