Agents pulling out of travel insurance industry
26 January 2009 21:35
There has been a drop in the number of travel agents selling holiday insurance since new legislation was introduced on January 1st, an expert has suggested.
Speaking with website Travel Weekly, Rock Insurance managing director Anthony Martin suggested that many agents have pulled out of the market since the Financial Services Authority was given the remit to regulate their activities.
From the beginning of this month, agents are no longer allowed to sell travel insurance unless they are authorised to do so or act as a representative of an insurance company or broker.
With that in mind, Mr Martin suggested that travel companies now see insurance as an extra hassle, estimating that as many as 35 per cent no longer sell it.
But he urged them to continue offering the service, adding to the website: "The economic environment we are trading in means there are inevitably going to be more company failures."
Last week, holiday comparisons website Travelsupermarket.com urged the industry to make greater efforts to educate tourists about changing legislations that will have a potential affect on their holidays.