From 1 January 2009 sales of travel insurance sold through travel agents and tour operators will be regulated by the Financial Services Authority (FSA) and ABTA is concerned that the cost and complexity of the new regulations will mean that fewer companies will offer travel insurance. This will lead to more holidaymakers travelling unprotected. Travel insurance typically includes cover for cancellations of holidays as well as cover for accidents and illness overseas and lost baggage.

ABTA's Code of Conduct makes it clear that travel agents and tour operators must draw their clients' attention to the importance of travel insurance.

Mike Monk, ABTA’s Head of Financial Services said: “When you are travelling, make sure you get adequate and appropriate travel insurance for where you are going and for what you will be doing. Ask your travel company about insurance, and if they can’t offer it, make sure you obtain it elsewhere as soon after you book your holiday as possible.”