The UK Financial Services Authority has published a policy statement setting out the final rules for regulating travel insurance sold alongside a holiday – known as Connected Travel Insurance.
The new regime will come into force on January 1, 2009, and the Financial Services Authority (FSA) will start to accept authorization applications for the new Connected Travel Insurance (CTI) activities from June 30, 2008.
Dan Waters, director of retail policy and themes at the FSA, said: Regulation is only seven months away and firms need to make sure they are fully prepared. We start accepting applications next month and firms are advised to apply early to ensure that they are ready in good time for the start of the new regulation next January.
Our rules are designed to put in place a proportionate, risk-based regulatory regime for these sales of travel insurance, securing protection for customers.