More consumers will travel abroad without travel insurance if the travel industry is regulated by the FSA, argues ABTA in its submission to the Treasury's review on the sale of travel insurance.
ABTA believes that the burden of FSA regulation is both very expensive and bureaucratically onerous, and if imposed, it is likely that many of its members – particularly small and medium sized travel agents and tour operators - would stop selling travel insurance products.
“When customers book a holiday, it is logical for them to buy travel insurance at the same time, as this provides instant protection, if they need to cancel,” said Mike Monk, ABTA's head of financial services. “Travel companies are in a unique position in this regard. They can offer the holidaymaker the best advice on their travel insurance needs as they have just sold them their holiday. It is convenient, and safeguards against customers from forgetting to buy insurance at a later date.”
Extending regulation is against current Government policy, which in fact, favours the cutting of red tape and encourages self-regulation.
At the moment, ABTA effectively regulates its members on the sale of travel insurance when sold in conjunction with travel arrangements through its Code of Conduct.
“There is always room to improve levels of service and competence – but extending regulation is not the way to do it,” said Mike Monk. “The best way is through a rigorous and well-policed system of education and support. ABTA Members are in the best place to offer the advice and sell travel insurance, and the vast majority of them sell travel insurance correctly. Reducing choice will not be good for consumers. There is no case for extending regulation.”
