JS Insurance blog

In January 2009 , tour operators and travel agents have to be authorised by the FSA in order to sell travel insurance . Make sure that when you book a holiday and the travel agent wants to offer travel insurance that they are regulated and authorised by the FSA .

The FSA set a deadline of 14th November 2008 for the agents to become authorised and at the time only 4 have applied to become directly authorised . This is worrying, there should have been many more .

One way the these firms can sell travel insurance is becoming an Appointed Representative or an Introducer of an authorised company; this entails supervision by the authorised firm to ensure that these travel operators are conducting the sale and administration of travel insurance in compliance with FSA regulations.  Acumus by the looks of things has developed quite a few appointed reps and gone down this route .

This new regulation by the FSA has the disadvantage for the consumer in that the purchase of the insurance with the holiday will be lengthier and more onerous, but that’s not a bad thing as the product is important and the process should give the customer a better understanding of it . The FSA really are moving towards “treating customers fairly ” with travel insurance , it’s a real strategy by them.

So this now begs the question a little; should the airlines still be able to sell the insurance as part of the airfare? The way in which this is currently sold is as an “opt out” when you are buying a flight online . i.e: unless you click that you do not want the insurance , it is automatically added to the fare . I think a lot of people do not and already have insurance ( usually annual ) . In some cases you have to opt out twice , is this treating customers fairly  I am not so sure .

Anyway January 2009 awaits , will the direct insurers get much of the travel insurance business from the travel agents and tour operators or will less travel insurance be taken out ? Watch this space