Travel insurers see general insurance market open up
by Richard Kilner
Acumus Insurance Solutions has stated that due to recent FSA (Financial Services Authority) rule changes that an opportunity has opened up for travel insurers to wet their beaks in the £42bn general insurance industry.
Travel firms that gain the status of Appointed Representative will be able to offer a wider range of insurance products.
Only a minority of UK travel insurance firms have grasped that recent changes by the FSA will permit them to offer a number of general insurance products, according to Acumus MD John Bibby.
Bibby went on to say that those who do realise and tap the potential opened up to them will be able to gain an extra source of income.
Travel firms of a middling size would be advised to become an Appointed Representative of an approved group, according to Bibby.
This would remove the need for major infrastructure investment, which could be prohibitively expensive.
Acumus’ own method has been to begin working with well known businesses such as Jet 2, Ryanair, P&O Ferries and Travel City Direct.
The businesses see the potential afforded by FSA changes, Bibby has said, but do not wish to divert their attention from their main business of travel products.
Should a breach occur Acumus would take responsibility.
The FSA rules will be finalised in the near future, either in May or June.