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From January 1, 2009 some major changes will take place in the way Travel Insurance is sold. Companies which are solely in business to sell travel insurance (known as stand-alone companies) have been regulated by the Financial Services Authority (FSA) since 2005 and will not be affected.

The change will hit the companies that have been selling travel insurance as an element of a holiday package, such as travel agents, tour operators, coach companies, and airlines. Although these travel companies may already be regulated as far as selling their other travel products, there has been a double standard regarding the sale of travel insurance. In other words, the stand-alone companies have been required to be FSA regulated in order to sell travel insurance, while those selling travel insurance as part of a travel package have not. Non-regulated travel insurance has also been widely available at retail stores, supermarkets, chemists and through the Post Office. It has also been offered alongside other insurance products such as house insurance or when opening a bank account, or as part of an employee benefit package. Read the rest of this entry »