The government has given its strongest hint yet that travel agents selling travel insurance will be regulated.
Speaking at the IIB's annual reception at the House of Commons this week, Ed Balls, Economic Secretary to the Treasury, said: "We are looking to make travel insurance a level playing field for all concerned".
In August, the Treasury announced a review that would examine whether the sale of insurance by travel agents should continue to be exempt from FSA regulation.
The review comes amid fears that there is widespread mis-selling of travel insurance by agents.
Meanwhile, IIB director general Andrew Paddick called for more democracy and accountability at the FSA.
He said: "There are now so many agencies and quangos run by unelected officials, there is the need for more democracy at the FSA and more backing for democracy at the top end.
"Please can the industry have more say at the FSA," he added.
Paddick also noted that the lower socio-economic classes no longer get advice: "This is a direct result of regulation".
But Paddick's pleas were dimissed by Ed Balls.
Balls denied that the regulatory process was undemocratic: "Regulation, competition and politicians are all accountable. Politicians are accountable for their appointments who in turn give over to experts in their fields."
Balls accepted there was a need for more consultation between the Treasury and the industry.
"We need to engage more on the important issues for the industry," he said.
