Travel insurer Cover-More aims to have a new underwriting partner by January, and will terminate its recently signed agreement with Great Lakes Australia.

The agreement, which includes a new generalised linear modelling (GLM) underwriting payment mechanism, allows Cover-More to look for other partners.

“Cover-More has received strong interest from the market and is in advanced discussions with multiple potential global underwriting partners to enter into a GLM-based arrangement at the same, or a very similar, target loss ratio,” the insurer says.

“Once discussions have been finalised and a preferred partner has been chosen, we will transition to the new underwriter. Cover-More expects to commence a relationship with a new underwriting partner effective no later than January.”

Cover-More has declined to comment further, or say if the search for a new partner is related to the impending ownership change at Great Lakes Australia.

It previously issued a statement saying Munich Re’s decision to sell Great Lakes Australia will have limited impact on its business.

Under the terms of the agreement Cover-More is required to give three to six months’ termination notice after it has signed with a new underwriting partner.

The agreement with Great Lakes Australia runs from July 1 to September 30 next year.

Cover-More says the GLM model for calculating underwriting premium is based on data from more than 30 years’ travel insurance history, and provides more consistent estimates.

“Our GLM… is designed to reduce volatility by ensuring payment of underwriting premiums more closely reflects expected claims outcomes and provides greater alignment and certainty to our distribution and underwriting partners, as well as investors.”