The Financial Services Authority (FSA) has introduced the final rules and regulations for consumers when buying travel insurance alongside holidays, otherwise known as Connected Travel Insurance (CTI).

The new regime provides consumers with clear, concise and regular information based on the firms’ services and offers. It also ensures that firms will have the correct resources and competent staff and will have the suitable systems in place which allows consumers to seek redress if anything goes wrong.

Travel firms on the other hand will be put under pressure as they will need to prove that they have the correct recourses and that staff are competent to undertake the business they do.  

Businesses affected will need to settle on whether to be an appointed representative of another FSA- authorised firm, be authorised by the FSA, be an unregulated introduce or no longer offer insurance, according to privatehealth.co.uk.  

Director of Retail Policy and Themes at the FSA, Dan Waters said- “Regulation is only seven months away and firms need to make sure they are fully prepared. We start accepting applications next month and firms are advised to apply early to ensure that they are ready in good time for the start of the new regulation next January. Our rules are designed to put in place a proportionate, risk-based regulatory regime for these sales of travel insurance, securing protection for customers.”

Authorised applications for the CTI activities will be accepted in 30 June while the new regulation will come into force from 1 January 2009.