A final statement setting out the new regulations for the sale of travel insurance has been published by the Financial Services Authority.
The new scheme means agents must become FSA members or formal representatives of intermediaries if they want to continue selling insurance policities.
The FSA will be accepting applications from the end of June and the new regime will come into force on 1 January next year.
FSA director of policy and themes Dan Waters said: “Firms are advised to apply early to ensure they are ready in good time for the start of the new regulation.”
The FSA predicts around 200 travel firms will join the authority and fewer than 200 will become intermediaries. The cost is expected to be £1,500 per application fee and a quarterly charge of between £128 and £1,000. There is a 30% early application discount.
Journeys Travel Insurance director Patrick Chong said: “We have had about 300 enquiries from agents about become appointed representatives for us, and we expect about half to complete the process.”
An ABTA spokeman said: “There are no surprises here. Some of our members are likely to stop selling insurance and fewer people will travel with insurance.”
This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.