Travel insurance regulation will damage the industry, according to the Association of British Travel Agents (ABTA)
Regulation from bodies such as the Financial Services Association (FSA) makes providing travel insurance more difficult, particularly for smaller travel agents, according to the ABTA.
The group is saying that if the government brings in more FSA regulation then many travel operators would be forced to stop selling travel insurance, which would reduce choice for consumers.
Mike Monk, head of financial services at ABTA said: "When customers book a holiday, it is logical for them to buy travel insurance at the same time, as this provides instant protection, if they need to cancel."
"Travel companies . can offer the holidaymaker the best advice on their travel insurance needs as they have just sold them their holiday."
In a statement, ABTA said there was a "total lack of evidence" for the mis-selling of travel insurance.
Around 20 million travel insurance policies were sold in 2006, of which around a quarter were issued by travel agents and tour operators.
Article ID: 123, Posted: Thu, 22 Feb 2007 09:00:00 GMT