Advantage, the national network of travel agents, is offering to train its members to become Financial Services Authority appointed representatives, ahead of a government review of how agents sell travel insurance.
The representatives would be given access to the highest standards of training, monitoring and support to sell travel insurance, Advantage said. This would allow them to continue selling insurance should the government decide to end travel agents’ exemption from regulation by the Financial Services Authority.
Last week, Ed Balls, the economic secretary to the Treasury, said a review of travel agents’ role in selling insurance had started with a government call for evidence and widespread consultation on the issue. It was in response to public concerns about travel cover sold along with a package holiday, he said.
Bringing agents within the remit of the FSA would be one of the options the government would consider if it finds serious travel insurance mis-selling.
In these circumstances, FSA appointed representatives can be exempt from FSA authorisation. Agents will be able to complete a simple online training course to ensure their insurance sales reflect FSA principles.
John McEwan, managing director of Advantage, said: “This has been something that the industry has been working towards for years. It make sense that agents be given the responsibility to provide their customers with the appropriate travel insurance policy for the holiday they have booked. After all, the agent that knows the customer and the detail of their travel arrangements is obviously better placed than anyone else to do this.”
The training will be free to agents who subscribe to become Advantage members. There are 800 Advantage members throughout the UK.