Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 14th of August 2018
December 19, 2007

FSA Consults On CTI Overhaul

by Stewart Douglas

Story link: FSA Consults On CTI Overhaul

Insurance regulator the Financial Services Authority has today announced it is to consult relevant parties on its proposals for overhauling rules surrounding travel insurance selling, in a move that will see the initial step towards introducing more formal requirements on insurance intermediaries.

The move comes off the back of an announcement from the UK Treasury that the Financial Services Authority will continue to regulate the way in which Connected Travel Insurance was sold to consumers, prompting the authority to consult on possible scope for reform from within the industry of the way in which the product is sold.

The FSA Director of Retail Policy, Dan Waters, said new proposals were heavily centred on the requirement for CTI regulation change. “We have carefully considered the CTI market in constructing the new regime. It is designed to be proportionate to the way the market operates and the risks it poses to consumers.”

Meanwhile, the outlined proposals look set to radically transform current regulation, looking for assurances of staff competence, resources and selling practices as part of its ongoing management of the selling process. The consultation document is designed to garner opinion as to the likely ramifications of the changes.

Amongst the more controversial proposals within the market, there will be a requirement for enhanced customer redress procedures to protect against problems in the provision of insurance, which could look set to cost the industry millions every year.

The new regulatory regime is expected to come into effect in 2009, whilst the consultation process will culminate at the end of the first quarter of 2008, by which point all relevant considerations should have been addressed.

The move will now mean travel agents should consider registering with the FSA for regulation, depending on the complimentary insurance products they offer clients.

 

News posted:



Related stories to FSA Consults On CTI Overhaul: