CTTG calls for insurance selling self-regulation
A common code of practice over the sale of insurance by travel agents should be introduced rather than regulation by the Financial Services Authority.
The call came from the Co-operative Travel Trading Group in its submission to the Treasury’s ongoing travel insurance review.
Opposing FSA intervention, CTTG warns that regulation would hit insurance margins, leading to higher prices and a decline in customers taking out cover.
The group has put forward the idea of a formally agreed sales procedure taking customers through a set of decisions based on eligibility, policy benefits and exclusions. Alongside this would run a self-regulated code of practice on travel insurance for agents overseen by ABTA and possibly modelled on practical guides produced by the Association of British Insurers.
CTTG, which covers more than 70 high street branches, sells around 500,000 travel policies a year but claims that compliant ratios are “typically” 0.05% or less.
The group says consumers’ good understanding of what they are buying is demonstrated by the low number of claims rejected by insurers – around 10%.
It suggests evidence of insurance mis-selling as highlighted by Holiday Which? is based on small sample numbers.
CTTG chief operating officer Mike Greenacre said: “CTTG members have 40 years experience of selling travel insurance without regulatory control and have rigorous procedures in place for its sale.
“We also put staff through ABTA insurance training. Our overriding focus is to ensure that consumers will enjoy their holidays so in terms of the product, we wish to ensure that the insurance product sold if right for our customers.”
by Phil Davies
Phil Davies
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