Travel Companies Flout FSA Regulations

The latest report published by the World First Travel Insurance states that more than 25% travel operators flout rules that comply with Financial Services Authority (FSA) rules regarding the sale of travel cover. The World First Travel Insurance discovered that some travel companies were operating illegally. This was claimed after a review of 400 travel sites selling travel insurance cover were done by the company.

Three mistakes were commonly found in these websites. Firstly, many appointed representatives or ARs did not exhibit their status or displayed the name of insurer they acted on behalf of. Secondly, most non-AR registered operators claimed that cover could be arranged and displayed details of the insurance and the charges of the premiums, which is against the FSA’s regulations. Thirdly, several non-regulated travel operators advertised travel cover, advocating specific insurance providers, which flout rules of the FSA.

Martin Rothwell, managing partner of World First Travel Insurance says that agents do not update their website and avoid paperwork. As a result, the terms and conditions of most of these websites remain old and ‘out of date.’

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