The Treasury is to launch a new investigation into the specific problems faced by consumers purchasing travel insurance as part of a package, and considering whether any changes to the regulatory framework are required to provide greater protection for them.
Economic Secretary to the Treasury, Ed Balls, said: "Our investigation will ask whether it's fair to put all the pressure on ordinary families to read the small print and ask the right questions to make sure they are properly covered.
"It will ask whether the travel industry should be doing more to ensure families are not left high and dry on their holidays and whether we need to strengthen regulation to protect them. The first step will be to collect all the evidence from consumers and industry experts - and then work out what needs to be done."
The review will work with business and involve a full public consultation to be launched early autumn.
