Usually the New Year is a sign of starting fresh and solving problems that blighted the previous year, and the travel insurance industry is no different.

It appears that the travel insurance sector has made a few New Year resolutions of its own. It has been suggested that things will change when it comes to holiday insurance this month.

It has been revealed that tour operators are turning to protection in order to win consumers, with a growing list only too eager to provide “cover for eventualities”, such as airline cancellations or failures.

In addition, 2009 is the first time that all travel insurance policies booked through a travel agent or tour operator will be regulated by the FSA, which means better protection for customers.

Kelly Ostler-Coyle, of the Association of British Insurers (ABI) commented: “Now everyone has the same right of comeback if they run into trouble with their travel insurance. Before, if you booked your insurance through a travel agent or operator, you had no comeback.”

Travel agents and operators have been advised to embrace the new rules from the FSA if they want to benefit from it during the credit crunch.

Still good to go

Despite the continuous doom and gloom of the recession and consumers feeling let down by travel agents, the British are still keeping the ‘stiff upper lip’ momentum by choosing to ignore the economic downturn and still purchase travel insurance.

A survey found that the high number of policies being taken out last month was a sign that Brits are still eager to take their winter breaks, despite any pocket digging they may be suffering from.

Chris Rolland noted that there is a distinct lack of evidence suggesting that holidaymakers will be missing their winter holidays this year and reminded customers to purchase travel cover.

Rolland said: “Especially for those looking to take advantage of the particularly good skiing conditions predicted this season, it is important to check that you have winter sports cover on your travel insurance policy since this is often not included as standard.”

Re-affirming this message that travel insurance is crucial is James Furse, who stated that those who do not purchase such cover were “short-sighted” for neglecting their insurance needs.

Furse said: “It is more and more important now. If you consider the risks that you're facing when you travel, it would be irresponsible not to have travel insurance.”

Furse added that opting for the cheapest policy can often lead to mistakes: “People tend to see it as a grudging purchase which is why a concerning proportion of travellers don't take out insurance.”

Those who fail to purchase good travel insurance could be left hefty medical bills at the end of their break.