Connected Travel Insurance new regulation only days away
The Financial Services Authority (FSA) is warning travel firms that sell Connected Travel Insurance (CTI) that they should apply for authorisation before new regulation comes into force on 1st 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; staff are competent to undertake the business they do; 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 only days in which to decide whether to seek FSA authorisation, become representatives of another authorised firm or cease selling travel insurance.
The regulator says that by 8th December it had received only four applications for direct authorisation and 71 Appointed Representative applications and has therefore issued a warning that firms without FSA authorisation may be committing a criminal offence if they sell CTI from 1st January.
Category: Insurance News, Travel Insurance News
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