Agents need to raise their game on insurance: Comment by J.Skidmore
Travel agents have won an important victory by being allowed to continue selling insurance without being regulated by the Financial Services Authority.
ABTA argued that it could do a perfectly good job monitoring travel agents.
On balance, I think they’re right. Yes, other areas of insurance are regulated, but holiday insurance sales make up only 5% of travel agents’ business.
And, most importantly, The Treasury was not presented with any real evidence of misselling by retailers.
But that isn’t to say that retailers are doing a perfect job.
The Consumers’ Association has found evidence of what it calls misselling, particularly where clients have not been asked about pre-existing medical conditions.
Travel agents need to raise their game over the sale of insurance. And ABTA has an important role to do in monitoring them and insisting on certain standards.
If not, there will be no complaints if the FSA starts breathing down the industry’s neck again.
See this week’s TravelMole Interview:
Interview: Ian Reynolds, chief executive, ABTA
ABTA chief executive Ian Reynolds warned thousands of travel agents could have stopped selling insurance if the government had decided to regulate the industry
Read previous comments by Jeremy:
06-June-2003 Keep terror alerts in perspective: Comment by J. Skidmore
30-May-2003 Packages must be competitive: Comment by J.Skidmore
30-May-2003 Government must improve communication: Comment by J.Skidmore
23-May-2003 Business agents so grateful for fees: Comment by J.Skidmore
16-May-2003 Bookings back – at a price: Comment by J.Skidmore
09-May-2003 War of words is healthy: Comment by Jeremy Skidmore
02-May-2003 Management must share the pain: Comment by Jeremy Skidmore
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