You are here: Home - Insurance - News -

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

Written by:
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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Hybrid car sales soar but ban looms

New car sales fell in January as confusion around government plans to ban certain types of engine weighed on consumer...