In our regular market update, agents report a drop in demand for travel insurance incomparison to the same period last year, as companies like Tesco and Argos enter the market

In our regular market update, agents report a drop in demand for travel insurance incomparison to the same period last year, as companies like Tesco and Argos enter the market

SOME travel agents are reporting falls of 20% in business for travel insurance compared to this time last year.

Brian Matchett, manager at Wes Travel Ltd in Honiton, Devon said: “It is quieter than this time last year. It is probably down by around 20% because there is just so much on the market now.”

Paul Dayson, manager at Spa Travel in Wetherby agreed the arrival of the likes of Argos and Tesco on the travel insurance scene was having an effect on business.

“I would say we are not doing any more than normal though we have had to knock down our commission levels to be more competitive,” he said. “Where two years ago we could earn 50% commission, we now work on rates of between 20%-30% but if we can offer a similar price to the competition plus offer the added service we can match them point for point.”

However, agents selling insurance free within an overall holiday package said the effect on business caused by increased competition had been negligible.

Craig Carroll, manager at King World Travel in Falkirk, said: “We are not really seeing a downturn. Sales are keeping steady.”