Rock Insurance is urging travel agents to embrace the new Financial Services Authority regulations to increase profitability in the current tough economic climate.
The FSA now regulates all travel insurance sales, replacing the previous regime that allowed travel association ABTA to oversee its members’ sales of travel insurance.
Rock Insurance managing director Antony Martin said: “The new FSA regulation creates a level playing field for travel insurance sales and, for the first time in a long time, agents can sell standalone travel insurance which could boost sales considerably.
“There is a perception that the regulation is complicated and too expensive and although it is marginally more expensive than the previous ABTA regulation, it widens the opportunity to sell creating more opportunities to earn valuable commission.”
The change means agents will no longer be able to sell insurance unless they act as the appointed representative of an insurer or insurance broker.