Regulating Travel Insurance
Thursday, June 28th, 2007Following on from this post, The UK Treasury Department has now officially given authority to regulate travel insurance policies sold with packaged holidays.
The decision came about after British travelers made complaints that they were having problems making claims as they were not correctly covered by the insurance policies they took out as part of a holiday package.
The FSA said they would:
“review the proposals following the next stage of public consultation by HM Treasury. If the decision is confirmed, the FSA will itself consult with industry and consumer bodies towards the end of the year on the regulatory approach it would take”
The Association of British Insurers welcomed the decision as they have long called for customers to receive the same level of consumer protection regardless of how they buy their travel insurance. They are also interested in ensuring that the new regime will benefit customers rather than adding costs in a competitive market.
Nick Starling, the ABI’s Director of General Insurance and Health said:
“The FSA will need to ensure that the regulation of all travel insurance is proportionate to reflect the low level of potential customer problems associated with this product, and to ensure that customers are not deterred from buy travel insurance”
Source: Insurance Journal

