TRAVEL agents have been shocked at the proposed minimum £300 fee to join the General Insurance Standards Council, according to a survey by GE Financial Insurance.
Sales and business development director Chris Harrison carried out the survey to find out what the travel trade and travel insurance industry thought about GISC plans.
The poll, of travel agents, tour operators, insurers, brokers and direct-sell companies, shows that most retailers expected to pay about £25 to join the GISC.
The proposed fee is a minimum of £300 and a maximum £100,000, with the actual level for travel agents based on 0.1% of their commission.
“I am going to have to go back and readjust the budgets as GE will have to pay £100,000,” Harrison admitted.
“A lot of people clearly underestimated how much this would cost.”
When asked who should pay for the new GISC, retailers said it should be the insurers.
Travel agents were also opposed to the idea of having to reveal how much commission they add to travel insurance, although most of those questioned agreed there is a need for greater regulation of the selling of travel insurance as it is currently poorly sold.
Insurers blamed travel companies for failing to comply with the Association of British Insurers sales code.
The survey also showed a split between insurers and the travel trade over the introduction of a formal qualification for those who sell travel insurance.
Agents were not in favour of the training idea.