Unlike other companies from 14 January, travel companies are exempt from regulation by the Financial Services Authority…
Unlike other companies from 14 January, travel companies are exempt from regulation by the Financial Services Authority when selling travel insurance in conjunction with the sale of a holiday.
What does this mean for consumers?
This exemption was granted because the evidence of mis-selling of insurance by travel agents is negligible. ABTA Members sell approximately 12 million travel insurance policies a year. Out of a total of 14,754 and 18,397 complaints received by ABTA only between 75 and 100 relate to travel insurance.
In actual fact holidaymakers who buy insurance from ABTA travel agents and tour operators will have double protection. The policy itself is regulated by the FSA, while the selling process is protected by ABTA.
Members of the public will be able to take up any complaints with ABTA, if they encounter problems. In addition all ABTA Members` staff who sell insurance, have, or will be taking, one or both sections, of a rigorous two stage insurance exam.
ABTA and its Members have always placed a high priority on ensuring that the advice given to consumers on a whole range of travel issues is professional and accurate and this exemption is simply a recognition of this fact.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
