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Association of Travel Insurance Intermediaries (ATII) Responds to UK Treasury Review
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Added: 02/28/2007
Type: Summary
Viewed: 610 time(s)
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Association of Travel Insurance Intermediaries (ATII) Responds to UK Treasury Review
In their response to the Treasury review on Travel Insurance, the Association of Travel Insurance Intermediaries has identified that the main area of concern is the inconsistency of point of sale material provided to prospective purchasers of travel insurance by both regulated and non regulated outlets.
The ATII could find no evidence of mis-selling by non regulated travel trade outlets, and highlighted the fact that, despite the level of sales from this source, the level of complaints to the FOS has increased, which would indicate that the regulated outlets are also making mistakes.
The ATII advocates that FSA regulations are overly restrictive in respect of travel insurance, which is a low value, high volume product. These regulations put too onerous a burden on the regulated outlets, and impede the sales process, without providing any discernable benefit to the consumer. Indeed, in many respects they could be perceived as counter to the best interests of the consumer.
At the same time the ATII acknowledges that the travel trade should provide more information at the point of sale.
The solution put forward by the ATII is for there to be a standard point of sale document across the industry, to be used irrespective of the sales outlet. The document would highlight key exclusions and health warranties, which should encourage the customer to question the cover provided and so make an informed decision whether to buy or not. If the customer has any queries, these can be answered by the regulated outlet, but the non regulated outlet would have to refer the customer to the intermediary who looks after their policy.
"The ATII represents 40 intermediaries who specialise in travel insurance, and our members handle in excess of £130,000,000 gross premium income," said Chairman Steve Howard. "Our members come from both sides of the spectrum, those who deal exclusively with the travel trade, and those who sell direct, so we are probably the best placed association to provide a balanced view to the Treasury.
"In fact what we are advocating is simply a reprise of the work done by the GISC travel committee before FSA took over, and was acceptable to all parties at the time. We believe that this simple document, and its implementation across the board will provide true consumer benefit, rather that the confusing array of paperwork clients are currently faced with."
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