ABTA is drawing up proposals to regulate members over the sale of travel insurance to avoid paying huge fees to join the new industry watchdog.
Members will have to pay fees of between £300 and £100,000, depending on turnover, to join the General Insurance Standards Council, a self-regulatory body which is due to start registering agents that sell insurance next year (Travel Weekly October 25).
Proposals being drawn up include expanding the ABTA Arbitration Scheme to cover complaints about the sale of travel insurance, adapting the code of conduct to set standards on the selling methods and doing mystery shopper-style visits to agents selling insurance.
ABTAhead of legal affairs Riccardo Nardi said: “We will need an extra £10 a year in subscriptions to manage the scheme. But that is much better than paying hundreds or thousands of pounds in fees to join GISC.”
He said GISC was sympathetic to ABTA’s arguments. “I think GISC recognises that we are in a unique situation.”
ABTA could resort to challenging GISC in court if it cannot carry out its proposals.
“We do have a legal option if GISC is seen as operating a cartel, with only its members allowed to sell travel insurance.” he added.
Nardi supported GISC’s aim for a self-regulating trade but said Government intervention may be necessary.