travel insurance
FAQs
What is the timetable for change?
On 1st January 2009 FSA regulations will come into force to control the sale of travel insurance sold in conjunction with any package holiday, travel tickets, accommodation or a tour. Travel organisers must have made alternative arrangements by this date if they wish to continue to sell travel insurance to the public.
What effect will FSA regulation have on my business?
You will have to decide which of the available options is most suitable for your business. The choices are: to become an appointed representative of a regulated principal, to become an introducer appointed representative of a regulated principal, to become directly authorised or to decide to stop selling travel insurance.
What does being an appointed representative actually mean?
Insurance providers already regulated by the FSA can bring travel organisers within their permissions by making them appointed representatives. The travel organiser can continue to sell travel insurance in house at the time of the holiday sale, working with the insurance provider to ensure that staff training, documentation, service and reporting all comply with FSA requirements. It is a formalisation of good practice that should already be in place with responsible travel organisers.
What is an introducer?
This is also a way of providing insurance through a regulated insurance provider’s FSA permissions. The rights given to the travel organiser are more limited as an introducer however the relationship between the travel organiser and the insurance provider is the same. Travel insurance is no longer sold directly by the travel organiser but they can actively recommend the products of their insurance provider and promote their insurance via websites or brochures or other material. Customers are referred to the insurance provider who will complete the sale.
What is best for my business?
If you are committed to selling travel insurance as a service to your customers, then the appointed representative route will enable you to continue selling directly with added support and assistance from us. If you would prefer to focus on selling holidays, but still wish to offer insurance and earn valuable revenue. Then becoming an introducer will allow you to refer customers to us and we will fulfil the sale.
What about direct authorisation?
If you choose to become directly authorised you can sell travel insurance through your own FSA permissions, not those of another insurance provider. However you will be directly responsible to the FSA in terms of reporting requirements, compliance and fees.
Should I stop selling travel insurance?
It is recognised that providing the opportunity to buy a travel insurance policy is clearly a consumer benefit. If your customers are used to being able to obtain travel insurance from your organisation - which they trust to give them good advice – then it makes sense to continue selling. It is also a requirement of the 1992 Package Travel Regulations that travel organisations provide their clients with advice about travel insurance.
What are the benefits of appointed representative status?
Being an appointed representative does involve a greater commitment on behalf of the travel organiser and the insurance provider but the potential rewards are much higher. A customer is far more likely to buy a policy if the sale forms part of the holiday or travel purchase. By working closely with an insurer you have the benefit of their experience and direct access to the underwriters and support staff whenever it may be needed. This gives your customers the best possible level of service.
How would I refer customers as an introducer?
You would include details of our travel policies, which we have designed specifically for you, in your brochure, website or other promotional literature. You introduce your customer to us and we look after the enquiry on your behalf. In the event of a successful sale you enjoy a valuable commission. We provide a polite and effective service, which is personal and friendly with no ‘high pressure’ sales tactics. Our call centre staff are fully trained for FSA compliance and product knowledge, ensuring your customer gets the best service and the right cover.
How can tgic help?
tgic can sign up travel organisers as appointed representatives to our brochureplus (link to how can I sell page) programme. tgic is a specialist and experienced insurer, providing a comprehensive insurance product and all the ancillary services such as healthcheck screening and worldwide claims handling. In addition we provide all the required training, point of sale material, interactive web site and policy documents free to our clients. All the reporting to the FSA is carried out by us. Finally, there are no application fees charged for appointed representative applications received before 31 October 2008.
tgic can also cater for the introducer option via our partnerplus (link to how can I sell page) programme. Promotional material, web solutions and ongoing assistance is provided by us. Once the referral has been passed to us we offer a complete travel insurance package to the potential customer. Once again we look after all the FSA reporting requirements and there are no fees to pay.
Is the process onerous?
Our aim is to make the process as straightforward as possible. There are some responsibilities on you as an appointed representative, but there is guidance and assistance from us. We seek to provide the highest possible level of client care – this combined with our FSA experience and specialist products will ensure that your day to day responsibilities remain focused on providing your customers with a high degree of customer care, ensuring they receive the right insurance product for their needs and at a competitive price.
What would be my responsibilities as an appointed representative?
We believe the requirements under the FSA Regulations will merely formalise how travel insurance is currently sold, when done thoughtfully and responsibly. Good practice such as ensuring the product is appropriate, that staff are knowledgeable and helpful, that a high level of after sales care is in place and that proper records are kept will form the basis of what we require. An approved person will be appointed as a point of contact for the sale of travel insurance and they will work closely with us.
What’s different about what tgic can provide?
As specialist insurer focused on the travel market, tgic has been providing insurance products to travel organisers for 25 years. As a regulated firm we are already complying with the requirements of forthcoming FSA regulation on a voluntary basis and when the final form of FSA regulation is announced in May/June 2008 we will make any necessary amendments to our agreements and practices.
As our relationship with you is a direct one, communication is straightforward and clear. You have immediate access to our team of underwriters and support staff to assist in any queries you may have – regulatory, policy coverage or sales.