There has been overwhelming industry support today for the government's announcement that it will be investigating the sale of travel insurance.
The Association of British Insurers (ABI), for instance, has pointed out that just 50 per cent of travel policies are currently sold under Financial Services Authority regulations.
As the government seeks to gain a greater understanding of the effect this is having on consumers, representatives from the ABI have said it can only be a good thing for the industry.
Stephen Sklaroff, deputy director general of the ABI, remarked: "The Financial Services Authority is already reviewing the regulations governing the sales of stand-alone travel policies to ensure they work in the interest of customers.
"It makes sense for the government to review the unregulated half of the market at the same time. We need a balanced and proportionate system which gives all insurance customers the protection they need without adding unnecessary costs or red tape," he added.
The sentiment is echoed by the British Insurance Brokers' Association (BIBA).
BIBA claims that a huge number of travel agents and tour operators are offering policies that are grossly overprices, while there are also concerns over cover for acts of terrorism.
"In today's uncertain climate, those travelling abroad should ensure that they have comprehensive cover in place. Travel insurance is just as vital as your suitcase when going abroad, and to ensure that you have the right policy for you, you should seek advice from an insurance broker," said Graeme Trudgill, technical services manager at BIBA. To read more about insurance, click here.
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