FSA details travel insurance changes
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Posted on: June 13th, 2008 by Robert Bergerson
The Financial Service Authority has published new regulations for the sale of travel insurance.
The new rules stipulate that agents must become members of the FSA or formal representatives of intermediaries in order to continue selling insurance policies.
The Authority will accept applications for new members and intermediaries from the end of June and the new regulations will come into effect on 1 January 2009.
Dan Waters, FSA’s director of policy and themes explained: “Firms are advised to apply early to ensure they are ready in good time for the start of the new regulation.”
The FSA is predicting that around 200 travel firms will become members and most likely fewer than 200 will apply to become intermediaries. The cost to apply is expected to be £1,500 and a quarterly charge of between £128 and £1,000 will be levied on members. A 30 per cent early application discount will be offered.
The director of Journeys Travel Insurance, Patrick Chong said: “We have had about 300 enquiries from agents about become appointed representatives for us, and we expect about half to complete the process.”
A spokesman for the ABTA commented: “There are no surprises here. Some of our members are likely to stop selling insurance and fewer people will travel with insurance.”
www.fsa.gov.uk
