FSA to regulate holiday insurance

Europe

The UK’s Financial Services Authority (FSA) will be responsible for the regulation of the sale of travel insurance sold along with a holiday from 1 January 2009. The FSA is currently responsible for regulating the sale of general insurance products, including travel insurance sold by insurers and insurance brokers. However, it does not regulate the sale of travel insurance sold along with a holiday. The FSA will now consult on new rules with the travel industry before the regulation comes into effect. Travel firms can apply for FSA authorisation to sell travel insurance along with a holiday from 30 June 2008. An interim authorisation regime will allow firms who have applied on or before 15 November 2008 to continue selling travel insurance while their application is processed. If travel firms choose not to seek FSA authorisation, they can become an Appointed Representative -where a regulated firm is responsible for the unauthorised firm, or an Introducer.