Responding to the UK Treasury review on travel insurance, the Association of Travel Insurance Intermediaries has voiced its concern over the inconsistency of point of sale material for prospective purchasers of travel insurance by both regulated and non-regulated outlets.

Despite finding no evidence of mis-selling by non-regulated travel trade retailers, the Association of Travel Insurance Intermediaries (ATII) has noted the level of sales from these sources against the increase in complaints to the Financial Ombudsman Service, which indicates that the regulated outlets are also making mistakes.

The ATII claims that the UK Financial Services Authority’s travel insurance regulations are far too restrictive for a low-value but high-volume product. As a result, regulated travel retailers have felt an arduous burden, which has significantly impeded the sales process.

The ATII has therefore suggested a solution for a standard point of sale document to be implemented across the industry, in both regulated and non-regulated outlets. The document would highlight key exclusions and health warranties, which will assist in helping consumers make a more informed decision as to whether they should purchase the product or not.

If the consumer 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 that looks after their policy.