FSA Regulation of Travel Insurance Sales With Holidays

The Financial Services Authority (FSA) will be responsible for the regulation of travel insurance sold along with holidays from 1st January 09.

The FSA has recently been consulting on the new rules before the regulation comes into effect.

The FSA was previously responsible for regulating the sale of general insurance, including travel insurance from insurers and insurance brokers - however it did not regulate the sale of travel insurance sold along with a holiday until now.

21 million consumers purchase travel insurance each year, in a market worth £670m in 2006, with travel insurance sold by travel agents and tour operators accounting for around a quarter of sales.

TRAVEL FIRMS

Travel firms can apply for FSA authorisation to sell travel insurance along with a holiday from 30th June 08.

Firms who have applied on or before 15th November 08 can continue selling travel insurance while their application is processed.

APPOINTED REPRESENTATIVES

If travel firms choose not to seek FSA authorisation, they can become an 'Appointed Representative' - where a regulated firm is responsible for the unauthorised firm, or an 'Introducer Appointed Representative' - where the firm do not sell insurance, but can direct customers to an authorised seller.

FURTHER INFORMATION

For further information for travel companies please visit the FSA website's frequently asked questions section at: www.fsa.gov.uk/pages/Doing/small_firms/travel/faqs/index.shtml

For further information on becoming authorised, please visit: www.fsa.gov.uk/Pages/Doing/small_firms/travel/authorised/index.shtml