The travel industry’s exemption from Financial Services Authority regulation over the sale of travel insurance has come under more pressure from a Treasury Select Committee report calling for tougher rules governing the sale of travel insurance.

The report claims travel insurance policies purchased at the same time as a holiday often create more problems than those bought separately because people do not look at the details of the cover as carefully.

The Treasury is to set to make a ruling over the existing arrangements, which sees ABTA travel agents exempt from FSA regulations when selling travel insurance policies alongside holidays.

Last week was the deadline for submissions to the Treasury.

Prior to the deadline Thomas Cook pulled out of the ABTA scheme while consortium Advantage launched a scheme to allow members to become FSA approved.