Daily Insurance Industry News
Daily Insurance Industry News
Monday 19th of March 2018
May 30, 2008

FSA reminder on travel insurance regulation

by Gill Montia

Story link: FSA reminder on travel insurance regulation

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.

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.

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.

In addition, the FSA will want to see evidence that customers who want advice receive good quality advice and are sold suitable products which take account of their circumstances.

Travel firms will also need to have systems in place that allow customers to seek redress 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 FSA will begin accepting applications in June.


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