The Financial Services Authority has revealed that its move towards better regulation of travel insurance policies sold as part of a package deal will come into effect in 2009.
Describing the implementation of the new travel insurance rules as being a process that will take 18 months, Financial Services Authority spokesperson Robin Gordon-Walker said that it will begin now and come into force in January 2009.
The official noted that a number of issues are yet to be ironed out before the rollout can be completed, one such being the number of travel agents likely to become regulated for sales of travel insurance.
“There are about 3,500 travel agents, but whether they’ll all become regulated [is questionable] … insurance is their secondary,” remarked Mr Gordon-Walker.
He also asserted that the regulation itself will be similar to that already employed with travel insurance vendors.
When announcing the changes that would be made in the travel insurance industry, economic secretary to the treasury Ed balls said that millions of families could be put at risk with inadequate cover under the current system.
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