Travel insurance regulation lands in new year

Travel firms that wish to sell insurance cover for holidays will face the same professional indemnity insurance (PII) requirements as general insurance intermediaries when they are regulated on 1 January next year. Firms that already carry on general insurance broking will probably not need to change their authorisation if they offer connected travel insurance (CTI), says the FSA in PS08/04, unless they wish to undertake a new activity like advising or arranging. Other businesses that offer CTI will need to seek authorisation, from 30 June 2008, or become appointed representatives. Applications submitted on or before 30 September 2008 will attract a 30% discount on the authorisation processing fee.