Direct Line has urged the government to regulate insurance sales by travel agents and tour operators.
In its response to the Government's consultation paper on insurance intermediaries, Direct Line said the FSA should adopt rules to protect consumers from being sold inappropriate travel insurance.
The insurer claimed that 64% of all travel insurance is sold through travel agents. The EU did not include travel agents in the original Directive on Insurance Intermediation.
Direct Line public affairs manager Alison Scowen said: "The failure to regulate the activities of travel agents is exposing consumers to unnecessary risks when going on holiday. Travel insurance is a complex financial service, not a holiday 'add on'."
