The scheme will allow travel websites to include an insurance option into their back-end systems to protect consumers who have built their own holidays with flight + hotel options.
The company admitted that dynamic packaging systems in the past had been “cheap and user-friendly”, but had caused concern over liabilities and consumer protection.
The insurance package will cover consumers for missed flights, hotels being closed or overbooked on arrival, legal proceedings against the hotel for personal injury, and medical care.
CWT managing director Peter Hilton said: “As a leading dynamic technology provider, customer conversion levels are crucial to our sales.
“We believe an integrated insurance policy specifically designed to cover dynamic packages.
“DP insurance has become increasingly important given the increased consumer awareness regarding DIY holidays since the Tonight with Trevor McDonald show was watched by 4.8 million people.”