Biba is to put pressure on the government to bring travel agents under the FSA's regulatory regime.
The government is expected to revisit the issue next year to assess whether consumers would benefit from regulation in the travel industry.
Peter Staddon, Biba head of technical services, said travel agents and tour operators selling insurance products should be forced to comply with FSA rules.
He told Insurance Times: "The government has let consumers down by exempting tour operators and travel agents from regulation. Buying insurance from the travel industry isn't like buying from a broker, they are not trained to sell these products."
He added: "We are going to be raising the issue at government level and raising the pressure to get travel agents FSA authorised."
But the Association of British Travel Agents (Abta) rejected the demand saying FSA regulation would be "too bureaucratic" for the travel industry.
An Abta spokesman said: "We certainly feel there is no need for FSA regulation. We require our members to work by the ABI code of conduct when selling insurance.
"The number of complaints we receive are minute - less than 0.5%. Because of the possibility of FSA regulation, we require members selling insurance to sit an exam."
The spokesman added: "To go further would be unnecessary, bureaucratic, expensive and most would probably stop selling insurance."