NEW LAWS governing the sale of travel insurance could lead to holidaymakers travelling without cover because agents are either unwilling or unable to comply with the regulations.
Insurance companies fear agents will fail to meet the strict criteria planned by the General Insurance Standards Council and stop selling policies.
The concern comes after ABTA mapped out detailed objections to the GISC proposal.
Under the plan agents will have to pay a membership fee of £300 and hit certain standards of selling insurance.
But Steve King, managing director of insurer Euclidian said the plan in its current format could lead to customers failing to buy policies.
“We could face a situation whereby agents cannot meet or don’t want to meet the criteria that has been set out,” said King.
“If that happens people could start travelling without insurance which is a situation that we could definitely do without.
“I support what the GISC is attempting to do but also understand the concerns of ABTA.
“I have suggested we act as an umbrella organisation for our travel agents to ensure standards are maintained.”
He warned against ABTA taking on the role itself.
“It is outside its usual parameter,” said King.
ABC Holiday Extras managing director Stephen Lawrence broadly supported the GISC proposal but also said agents may stop selling insurance.
“It’s unlikely but could happen,” he said. “I think it’s important something is done to uphold standards as the public are more aware of scams involving pensions and life insurance. There is a negative public impression of the insurance business.”
GISC chief executive Chris Woodburn stressed that nothing was set in stone and said talks will take place with ABTA.
“I understand where they are coming from and we shall sit down and go through the concerns,” said Woodburn.