TMU, Travel Ledger embeds cover in B2B travel payments | The Paypers

TMU Management, a managing general agent providing cover for businesses in the travel, payments, and financial sectors, has partnered with Travel Ledger, a platform that automates billing, reconciliation, and settlement between travel agents and suppliers. Under the agreement, TMU’s travel distribution cover is built into Travel Ledger Premium and protects participating suppliers’ payments against agent default or insolvency. The cover is available only to Premium suppliers. It is intended to give them more certainty when extending credit, while allowing agents to access better settlement terms, provide less collateral, and retain more working capital.

Cover is bundled into a single Premium subscription

Travel Ledger Premium is a subscription that combines the platform’s standard data and collection services with the cover obtained through TMU’s policy. Premium suppliers pay one fee for the combined service instead of paying separately for collection services and failure cover. Travel Ledger does not sell or resell insurance policies. It obtains the cover to support its Premium payments infrastructure, and the cover is included only within that product line.

To integrate the protection without slowing down settlements, the two companies jointly set the underwriting criteria, data-sharing processes, risk triggers, and transaction monitoring. As a result, each transaction and its financial protection are handled within the same system. Travel Ledger reports that since the facility was introduced, participating suppliers have been more willing to extend credit to agents whose default risk is covered. Agents, meanwhile, have seen lower collateral requirements and more efficient use of working capital.

Partnership addresses a long-standing credit risk in travel distribution

Suppliers have traditionally protected themselves against agent insolvency by asking for upfront payments, applying restrictive credit terms, or requiring additional financial security. These measures reduce supplier exposure, but they can put significant pressure on agents’ cash flow and limit their capacity to grow. Sami Doyle, CEO of TMU Management, said that while the travel industry has made progress in modernising payments, the risk behind those payments still needs to be addressed. By placing cover inside the transaction, the partnership offers an alternative to upfront payments and to agents tying up funds as security.

Roberto Da Re, CEO of Travel Ledger, said that embedding TMU’s cover within the Premium product allows the company to combine automation with assurance for its Premium suppliers. Both companies also see wider effects for the market. Doyle added that placing cover in the transaction changes how risk can be managed between agents and suppliers, with the potential to improve liquidity across the travel industry. Looking ahead, the two companies plan to develop the framework further to support new forms of trade credit, escrow, and account-to-account settlement.