Travel insurer Citybond is providing insurance schemes to travel agents and tour operators formerly serviced by the now defunct Travel Protection Group (TPG).

Citybond sales and marketing director Iain Chalmers said it was providing its Suretravel scheme to 180 of TPG's partners.

"We had heard TPG was in difficulties mid-January," said Chalmers.

"We said if TPG had problems, we had a retail scheme we could send to members. The schemes were to expire by the end of January, so agents would have nothing to sell from 1 February."

He confirmed that Citybond had been selling its scheme from 1 February.

"We essentially bought the database, not the business, liability or assets," he said.

TPG associate director Philip Watson said there were a "number of potential purchasers interested in bits of the business".

He told Insurance Times last month that the company was in talks with interested parties with a view to restructure this year.

TPG, the largest travel intermediary, was placed in administration last week.

An industry expert suggested that a handful of key people at TPG had been offered jobs elsewhere.

He said the interested company was looking to relaunch the business as the Travel Protection Company and bring the tour operator part of the business with it.

Watson could not confirm the rumour.

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