A miniple owner says clients are cancelling high-value bookings because they cannot find adequate travel insurance.
Spear Travels chairman Peter Cookson said the problem was particularly noticeable for bookings of more than £25,000 per person.
The issue has cost the 12-branch agency sales, including a potential £200,000 booking because the clients could not find suitable cover.
Cookson, whose chain is not licensed to sell insurance or pass on details of specialist insurers, said: “It is seriously frustrating and a problem that is regularly raising its head.
“These clients decided not to go as they could not take the risk of booking and not being able to cancel late and having to swallow the cost.”
Advantage Travel Partnership said some other members had reported the same problem, with sales delayed as clients sought adequate cover.
Leisure director Kelly Cookes said: “We’re working closely with current insurance partners and potential new ones to support members.”
Insurers had reduced cover because of risk associated with travel due to Covid, she explained.
“This is an issue across the whole sector,” said Cookes. “Partners are speaking to various underwriters to increase these levels [of cover].”
To sell insurance, agents must be licensed by a Financial Conduct Authority intermediary as an appointed representative. Alternatively, they can become an introducer-appointed representative of an insurance firm and pass on information, such as the provider’s contact details.
Aito Agents chair and Haslemere Travel owner Gemma Antrobus said the problem could be resolved if clients were put in touch with the right insurer or broker.
“As an agent, I cannot recommend an insurer but I can say ‘here are details of companies’,” she said, adding that she had not faced the problem.
An Abta spokesman said: “Travel insurance policies will have a capped cancellation limit, which will vary, but will be sufficient for most bookings.
“For extremely high-value bookings, there are a few insurance brokers that offer specialist cover.”
The Association of British Insurers said it was not aware of any “systemic issues” but advised agencies to contact specialist brokers.