Traditionally, the two sources of travel bonds have been your bankers or
an insurance company…
Insurance companies are professional risk takers (underpinned by sound underwriting techniques), whereas banks are risk averse. This is why, if you bond with your bank, you will generally be asked to put a sum of money on deposit with them equivalent to the amount of your bond. This means that, in the event of a call on the bond, the bank will immediately pay themselves back out of your ring-fenced cash.