Recital (23)

In order to ensure the effectiveness of insolvency protection for travellers at all times, it should be provided that the security is sufficient to cover the costs of refunds and, where applicable, repatriations. Such security should take into account that insolvency might occur at a time when an organiser holds the highest amounts of payments. Any increases in those amounts due to a higher volume of packages sold in a given period compared to anticipated sales should be taken into account. It should be clarified that Member States should supervise the insolvency protection of organisers and monitor the availability of insolvency protection. Where necessary to ensure effective insolvency protection, Member States should be able to require additional mechanisms, such as a back-up fund, to complement, for instance, the protection provided by insurance policies. Such back-up funds should normally be funded exclusively through contributions from organisers and should be co-financed by Member States only in exceptional and duly justified circumstances. Insofar as such measures involve State aid, Union rules on State aid apply.