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ABTA defends agents over insurance sales
ABTA has come to the defence of agents and tour operators who have been coming under a barrage of criticism over insurance sales.
In a statement issued today, ABTA said it disagrees with the Treasury Select Committee’s recommendation that agents and operators should be regulated by the Financial Services Authority.
“ABTA strongly disagrees with the Committee’s view that there is clear evidence of consumer detriment for travel insurance sold by travel agents and tour operators,” it said.
“ABTA’s Code of Conduct requires all ABTA Members to sell appropriate travel insurance to customers and all ABTA Members staff must have sat and passed an insurance training exam before they are allowed to sell insurance.”
It said its latest figures, for the financial year July 2005 to June 2006, showed that of the 17,834 complaints it received, only three were related to the potential misselling of travel insurance
“FSA regulation would lead to a significant proportion of ABTA members choosing not to sell travel insurance, as regulation is both expensive and onerous,” the statment continued.
“This would significantly reduce customer choice and lead to an increase in the 14% of customers who travel abroad uninsured.
“In addition it is very important that customers purchase cover at the same time as they book travel arrangements to ensure that they are protected for any potential cancellation charges prior to travel. Many will no longer have this option and be adversely affected as a result.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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