The Financial Services Authority (FSA) is reminding insurers and travel agents that new regulations regarding the sale of travel insurance come into force in January 2009.

From next year, travel firms that sell insurance will have to be able to demonstrate: that they are fit and proper and appropriately resourced; that staff are competent to undertake the business they do and that customers receive sufficient, clear, concise and consistent information about a firm’s services and products, so they can make informed choices. With out meeting these criteria travel agents will not be authorised to sell travel insurance.

FSA will also be monitoring the level of customer service within the industry and an agents’ ability to offer consumers products that reflect their specific needs. The new regulations will be making sure that consumers are given the tools to contact the travel agents with queries or complaints if things go wrong.

Businesses affected now have seven months in which to decide whether to seek FSA authorisation, become representatives of another authorised firm or cease selling travel insurance.
The Authority already regulates the sale of travel insurance that is not connected to any particular travel arrangements and bought direct from an insurer, or through an insurance broker.