White Mountains Insurance Group, Ltd. is entering the $15-billion a year travel insurance market in a 50/50 joint venture with DavidShield for the development, marketing and distribution of travel insurance worldwide.

The product will be based on the PassportCard® platform, a patent-pending technology developed by DavidShield. The deal between the two companies is subject to regulatory approvals.

The travel insurance market has enjoyed consistent growth, due to the increase in living standards worldwide (and in emerging markets in particular), increased global air travel and growing awareness of the insurance and healthcare services markets.

PassportCard®, which was launched in early 2012, is a unique and advanced product that allows customers to access healthcare and other insurance coverage automatically and immediately through a renewable magnetic debit card.

The card can be used for services in all countries around the globe, without the need to file claim forms or to pay out of pocket costs.

Under the agreement, the partners will establish a new company that will operate from Zurich, Switzerland and will coordinate the ongoing development of the PassportCard® product and its distribution to partners and franchisees around the world.

Manning Rountree, Managing Director of White Mountains Capital, said: “PassportCard® is one of the most innovative insurance solutions we have seen in recent years. The product provides a superior customer experience. We believe our partnership with DavidShield will grow PassportCard® into a global market leader.”

Alon Ketzef, DavidShield Group’s CEO, said: “PassportCard® is nothing less than a consumer revolution, abolishing the borders between countries, and allowing us to provide exceptional service, quickly, simply and, most importantly, without the bureaucracy that characterises the world of insurance.”

Mr. Ketzef added: “Since its launch, PassportCard® has attracted great interest internationally. It has won awards for innovation around the world. We are convinced that in combination with White Mountains and its global capabilities, we will expand operations and enable customers worldwide to enjoy the product and service experience we provide.”