FSA regulation will mean the end of free insurance packages for millions of credit card consumers.

Halifax is dropping its travel and purchase protection insurance on all new credit cards.

A spokesman for Halifax said: "This is being done on the basis that costs are rising in the new regulatory environment."

And Sainsbury's Bank is to withdraw travel accident insurance and purchase protection cover from all its cards from 1 March 2005.

Lloyd's TSB withdrew its free packages at the beginning of November. It also cited the demands of FSA regulation for the review of its insurance package. As a result of the review the company "decided it is time to focus on the core product."