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As of 1 January 2009, travel agents and businesses selling travel insurance will be doing so under new FSA guidelines. Despite a campaign by the FSA to educate the trade on the legislation, research from independent travel insurance experts World First Travel Insurance shows that 22% of ABTA agents either don’t know what the changes mean or have done nothing to prepare themselves for the New Year. As even a small travel agency selling just a few policies a week could miss out on over £7,000 commission a year, the loss of earnings could be significant.
Help is at hand in the form of World First Travel Insurance, which has identified a new “reseller” status for the UK travel industry, enabling them to become fully FSA compliant travel insurance resellers. This new status allows agents et al to continue to make up to 30 per cent commission on each policy sold without having the headache of dealing with the FSA directly. This new service is called ‘Trade Routes’ and can be accessed at www.trade-routes.co.uk.
‘Trade Routes’ provides the industry with customisable white-label websites. The travel industry can have an own-brand travel insurance website with a unique web address to which they can direct customers. This leads users to a site “powered by World First”, which is fully regulated and legislated by the FSA on members’ behalf. Insurance policies are purchased from this site.
The service offers:
- Full quote and purchasing facilities matching the agent’s existing website look and feel
- Flexible commission (up to 30%) with rates chosen by the agent
- Range of policies so agents can offer those that best suit their own customer profile (i.e. cruise or backpackers)
- A dedicated contact centre where telephone calls and online requests are answered in the industry partner’s name
- Completely own-branded digital policy fulfilment
- Intelligent marketing assistance (including adverts in all formats) which helps agents find the right customer touch points to make the most out of travel insurance sales without the added regulatory headache.
“This is an exciting project for us,” comments Martin Rothwell, Managing Partner of World First Travel Insurance. “We have operated B2C and B2B travel insurance brands for 25 years and are proud of the cover we offer, but the changes in legislation opened a new door of opportunity for us. FSA deadlines are already passing and our solution will enable the industry to continue to sell, and claim commission on, travel insurance.
“It is important to note that agents who don’t comply with FSA legislation and continue to sell insurance after 1st January will be breaking the law. ‘Trade Routes’ ensures that we take care of all the FSA legislation on our clients’ behalf. We will sell the policies and provide all the documentation and commission doing so as a hidden partner, so agents can maintain their relationship with the consumer. And, with commissions of up to 30 per cent, it is a painless, free, win-win option for the travel industry.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
