Travel insurance shake-up receives backing

A proposed shake-up in the way that travel insurance is sold to holidaymakers is being backed by a large majority of us.

That is according to the British Insurance Brokers’ Association (Biba), which published a survey on the subject.

Government proposals to revolutionise the market will focus on protecting consumers from travel agents who fail to explain the full details of the policies they sell.

According to the survey, 72 per cent of travel insurance customers were not advised whether terrorism cover was included in their policy.

It is situations like this that have led to widespread support for the government’s plans, with 97 per cent of those asked saying that they agree completely with the proposed crackdown.

“It is essential that consumers are fully protected,” said Biba chief executive Eric Galbraith.

“Travel insurance is vital when we jet off on our holidays and it is the role of the provider to ensure that consumers are both fully covered and understand the limits of their policies.

“Biba brokers and the rest of the regulated industry have been fulfilling this commitment for years and the government’s proposals would ensure that travel agents and tour operators fall into line,” he added.

The research also found that 56 per cent of agents failed to inform customers of how to make a complaint, while only 47 per cent of customers said that they read the small print on their policies.

If you are taking out travel insurance make sure that you take the time to read the small print and ask for clarification on anything which you are unsure of.

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Biba encourages PPI

Insurance brokers are being encouraged to include payment protection insurance (PPI) with their products.

The British Insurance Brokers’ Association (Biba) is launching a series of new incentives aimed at attracting brokers to selling PPI.

Biba is offering products with enhanced benefits, a more competitive rating structure and improved commissions.

The organisation says that driving PPI will benefit consumers as they will receive better protection on loans, income and mortgages.

The changes include the introduction of partial cover on stress, back-related and pre-existing conditions, as well as the removal of exclusions relating to Aids.

“We can all see that the distribution landscape for PPI is changing as many existing providers continue to be challenged by the regulator and media to improve their sales processes, cover and cost,” said Eric Galbraith from Biba.

“This recent attention has shaken consumer confidence in buying PPI from non-broker channels and the time is right for brokers to seize their market share. We’re providing our members with the right tools to do this.”

Customers taking out any kind of loan should consider PPI, as it offers protection against any unforeseen changes in your personal circumstances.

Biba has promised to give brokers “whatever level of support they require” and has described the new products as “a win, win scenario”.

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