It is important that domestic tourism accommodation providers (including holiday parks, self catering companies, and hotels) have updated any cancellation insurance or policies they sell to fall in line with the new FSA regulations.
Since the start of 2009, the Financial Services Authority (FSA) has introduced new regulations surrounding the sale of travel insurance. These regulations also affect all hotels, guest houses, holiday parks, and self-catering companies who sell UK Holiday Cancellation Insurance.
Despite a long campaign by the FSA and bodies like ABTA to educate travel businesses, there is still confusion amongst domestic operators about what is and what is not regulated.
World First Travel hopes the following points help to clarify the picture:
If you are advising visitors about insurance, are collecting premiums, or issuing insurance cover directly to your guests, you must become either an FSA accredited "Appointed Representative" or "Introducer". If you do not, and continue arranging insurance as outlined above, you will be doing so illegally.
World First Travel have produced a short guide about the FSA Travel Insurance Regulations.
If you are currently distributing holiday cancellation insurance leaflets and doing nothing else (i.e. you are simply passing on third party or incidental information) you can continue to do so without signing an agreement, and even if you are being paid commission on any sales made. This is known as being a "passive" or "unregulated" introducer and is not a regulated activity because consumers are buying their own insurance without any guidance or overriding influence from you.
If you distribute leaflets through Rothwell & Towler's "Guest First" brand (which has been successfully providing domestic holiday cancellation cover for over 30 years), we should have already communicated these changes to you, and you can rest easy that the regulations don't apply to you and do not need to sign any agreements or contracts.
World First Travel take care of the FSA so you don't have to. Some key benefits of working with them include:
No matter the size of your business if you want to offer travel insurance you need to make sure you are compliant with FSA regulations. If you want to check, contact the leading UK insurance specialists World First Travel Insurance.
or call Martin Rothwell on: 01404 548 661.
Date added: Tuesday 14th April 2009
Latest updated: Friday 7th June 2013