Regulation shakes up UK travel agents on insurance
The government has announced that all travel agents will be subject to regulation by the Financial Services Authority when selling travel insurance to customers with a holiday the same regulatory body that already oversees fair play for companies selling travel cover directly.
From January 2009, the Financial Services Authority will take responsibility for regulating all travel insurance sold along with a holiday, i.e travel agents. Ed Balls, former Economic Secretary explains why this will benefit the consumer: Evidence shows that companies regulated by the FSA are better at providing consumers with product information and guiding them through the sales process.
In practice, the Government is saying that Travel Insurance is not always straight-forward to understand, so it is necessary for regulation to ensure that key aspects of the cover are fully laid out, before a customer purchases. Research indicates there is a knowledge gap in public understanding currently which the FSA can help close. Travel insurers who sell directly to customers, through the internet or otherwise, already have to be FSA approved, meaning they are duty bound to explain the benefits of their products, outlining key exclusions that may apply, not just the price.
Rob Thomas, Marketing Director of Travel Insurance Web: We welcome this announcement by the Government. When we sell a policy online, we understand the way in which a customer must be well informed before they buy. Many people think the internet is fixated on pricing, but quality and the nature of the service is probably more important. As an FSA regulated company, we welcome the idea that all providers will now offer the same level of transparency, greatly reducing the possibility of mis-selling.
Travel Insurance Web was established to slash the cost of travel insurance to UK consumers. We're confident that our single trip travel insurance is the cheapest travel insurance available online. Not only does our single trip travel insurance give you comprehensive cover for an amazingly low price, but it can also be completely tailored to suit your individual needs.
