Government rethinks travel insurance exclusion

The government’s decision three years ago to exempt travel agents from general insurance regulation won it few friends in the insurance industry. But now it seems the government could be contemplating a change in the rules. Last month economic secretary to the Treasury Ed Balls announced an investigation into the sale of travel insurance as part of holiday packages and said he would consider changing the regulatory framework that treats travel insurance sold via travel agents differently, ie not at all, from travel insurance sold by insurance brokers or firms.