The problems with XL have made the insurance industry wary of the travel sector, of course XL were insured by AIG, itself under threat of collapse even without the increased pressure of the XL failure.
In a shock move, Insurance company Euler Hermes, a travel insurance specialist has seen fit to withdraw cover from one of it's clients leaving them potentially exposed despite assurances from the travel company that holidays that have been sold will not be affected in any way.
This development compounds some of the current problems such as the struggling travel industry and the struggling financial houses, neither of which will becoming stable any time soon in the current economic climate. One can't help but feel that there will be more travel industry heads to roll before the next holiday season is over.
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