From January 2009, the Financial Services Authority will regulate the selling of travel insurance by travel agents. This follows the u-turn decision by the Financial Services Authority and it is a move that has been welcomed by insurance brokers. Insurance Brokers have indicated that it could mean more business for them, as smaller travel agents decide not to go through the regulatory process.
The news is not so popular with travel agents who are under the impression that there are almost no recorded complaints of mis-selling of travel insurance through travel agents. They also believe that they have taken steps to ensure that their staff are correctly trained in the selling of travel insurance.
Our view
Whether welcome or not, it would be unethical for one firm that arranges one particular type of insurance to have to comply with conduct of business rules and another not have to comply with those same rules because they arrange a slightly different insurance package. We are also not so sure about the supposed low complaints levels.
If you are a travel agent and you need help with regulation visit the Compliance IT.com or visit our Compliance Shop or contact us.