Time running out for travel agents?

If the travel industry is eventually brought into the insurance regulatory fold, there's no doubt the numbers of travel agents and tour operators selling insurance will fall, just as the number of insurance brokers declined when they underwent the same process.

Time is running out for travel

agents and tour operators selling insurance, according to Steve Hook, director of corporate & travel at Mondial UK. He urges other high street travel agents to join Thomas Cook in applying now for FSA authorisation. "We have long argued that the industry as a whole should be standardised. ABTA's efforts to ensure that its members are adequately trained seemed to have failed. It's a shame, but nonetheless a blessing that 'Which?' and the BBC's 'Watchdog' put the spotlight on the issue. After all, why should consumers be continually exposed to risks as a result of buying insurance from travel agents and tour operators that's potentially not suitable to their needs?

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Steve Hook

"Partial exemption has been nothing more than a compliance loop-hole, and time is running out. I strongly believe the industry as a whole will see a future of full regulatory compliance. It's long overdue. The move by Thomas Cook to apply for FSA authorisation before the Treasury even made its decision, should send out a clear message to the rest of the high street players that burying their heads in the sand may buy them time, but ultimately, it will not excuse them."

Meanwhile Sarah Anderson in the Thomas Cook press office believes they will be the only high street travel company to offer customers the level of protection that FSA supervision implies. "Thomas Cook takes very seriously its responsibilities for selling all products. Insurance is to be handled within the more stringent regime of the FSA. We are confident that our travel consultants are well-trained and follow the established process in selling travel insurance."