One of the UK's largest travel agents, Thomas Cook, is to overhaul how it sells insurance after applying to be regulated by the FSA.

It comes amid heightened tensions over whether the travel agent and tour operator industry should be forced to comply with FSA rules.

The Treasury is in the process of holding a consultation on the issue, which is due to close on 22 February.

Thomas Cooks' move will be seen as a victory for broker trade association, Biba, which has repeatedly called on the travel industry to improve selling practices.

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