FSA publish new rules for travel insurance
26 January 2009 09:39
Travel firms and holiday providers that sell travel insurance alongside a holiday have been targeted by a policy statement from the Financial Services Authority (FSA).
The FSA published a policy statement at the end of last week stating the final rules for regulating travel insurance sold with a holiday, which is known as Connected Travel Insurance.
Consumers will benefit from the new scheme as firms will have to make sure these products are correctly resourced with staff who have been appropriately trained.
Also consumers will get access to clear information of what a firm provides, so they can make informed choices and if things go wrong consumers can obtain redress.
The new rule system comes into effect on January 1st next year and the FSA will start authorising applications of the new travel insurance activities from the end of June.
Dan Waters, director of retail policy and themes at the FSA, said: "Our rules are designed to put in place a proportionate, risk-based regulatory regime for these sales of travel insurance, securing protection for customers."