You are here: Home - Insurance - News -

New rules to help people with health issues get cheaper travel insurance

0
Written by:
05/02/2020
The Financial Conduct Authority (FCA) has introduced new measures to help consumers with pre-existing medical conditions have better access to more affordable travel insurance.

The rules require insurers to signpost consumers to a directory of specialist firms that will cover them if they have more serious health concerns.

Firms will be required to signpost customers when cover is declined or cancelled due to a pre-existing condition, when a pre-existing condition is excluded from cover, and when a premium will cost more due to a pre-existing condition.

Consumers with more serious pre-existing medical conditions could save around 40% on travel premiums by switching to a specialist provider, according to the FCA.

The government-backed Money and Pensions Service (MaPS) will create the online directory, which will list providers that specialise in covering consumers with more serious medical conditions.

Insurers will have to implement the new requirements by 5 November 2020.

Firms will also be required to include the details of the directory on their website within 30 days of becoming aware of the directory going live, which is expected to be by summer 2020.

The FCA estimates there are up to 14.1 million consumers with a pre-existing condition who look to purchase travel insurance each year. Of these consumers, approximately 0.7 per cent are declined cover, and 11 per cent purchased a policy with an exclusion for their condition.

Some consumers who are offered a policy may also benefit from shopping around, as they might find more affordable cover with a different provider.

‘Insurers must change their approach’

Eve Byrne, head of campaigns at Macmillan Cancer Support, said: “Today’s announcement is sorely needed for customers desperate for a break but struggling to access affordable travel insurance. This includes the thousands of people living with cancer who call our free support line each year for advice after being blindsided by sky-high premiums, often well into their recovery or with a doctor’s permission to travel.

“While a directory of specialist firms is a step in the right direction, mandatory signposting will only benefit customers with pre-existing medical conditions if there is appropriate and affordable cover available to them. The insurance market must change its approach to covering people with pre-existing conditions to ensure that people living with cancer can access a competitive range of options that appropriately meet their needs.”

Kevin Hancock, chair of the Society of Insurance Broking, said: “All consumers should be able to access the right travel insurance for them. It is vital that consumers with pre-existing medical conditions find it simple and straight forward to find the right cover for their needs.

“It makes sense that firms offering retail travel insurance should point consumers they are unable to assist towards a directory of specialist providers who can provide cover to those with pre-existing medical conditions.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week