The number of travel insurance cases taken to the ombudsman has increased by 19% in the past year alone. Bar the year impacted by Covid, complaints are now at their highest level in the past decade.
According to the free service, which resolves disputes between consumers and financial firms, there were 4,466 travel insurance complaints in the last financial year (2023/24). In the previous financial year (2022/23) there were 3,745. Prior to the pandemic in 2019/20 the figure was just 2,510.
The FOS said that cases were primarily driven by people dissatisfied with insurers declining their claims.
In particular, the Financial Ombudsman revealed it is seeing a rising trend of policyholders being told that their medical conditions had not been properly disclosed, people being dissatisfied with the levels of emergency assistance after falling ill abroad, and complaints about delayed or missed flights. Complaints were also received relating to lost and stolen luggage.
‘Concerning to see’
Abby Thomas, FOS chief executive and chief ombudsman, said: “With the holidays upon us, and millions of families heading overseas on their summer breaks, it’s crucial that people taking out travel insurance know what they are signing up to.
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“It’s concerning to see so many people dissatisfied with their insurance provider. That’s why it’s so important firms take the time to explain terms, treat people fairly, and ensure everyone understands their policy.
“If people aren’t happy with how they have been treated they should contact our free, independent service and we’ll investigate.”
Jenny Ross, editor of Which? Money, added: “Travellers should have faith that their insurer will do right by them in the event something should go wrong with their trip, so it’s concerning to see such a significant rise in the number of complaints about travel insurers to the Financial Ombudsman.
“The FCA’s new Consumer Duty should have resulted in firms raising the bar in how they support their customers and in how they put things right when their treatment of customers has not been up to scratch. These figures are likely to be a drop in the ocean, given that many people won’t escalate their complaints to the Ombudsman.
“The FCA [financial regulator] must do more to hold insurance firms to account, and should be ready to take tough action against those that are persistently falling short.
How to find the best travel insurance
- Always check the small print
Checking the policy terms and conditions carefully is incredibly important, including what medical history you need to tell your insurer about and what activities are covered under the policy.
- Read the policy exclusions
Most travel insurance policies specify the events which are insured under the policy and the general exclusions which apply to the policy. Even if there’s no specific exclusion it doesn’t automatically mean you are covered.
- Understand medical insurance
Travel insurance is not the same as private medical insurance. Most policies require you to seek treatment in a public hospital. The insurer may not pay for private treatment unless it’s required.
You may need to tell your travel insurer about pre-existing medical conditions, even if you have fully recovered.
- Airport issues
Your travel insurance may not cover missed flights caused by security delays, airport evacuations and/or problems with visas and passports
Most travel insurance policies will only cover flights missed because of a specific list of insured events such as failure of, or delays to public transport or adverse weather conditions.
If the airline loses your luggage, travel insurers will usually require you to obtain a ‘Property Irregularity Report’ from their airline while still at the airport and provide proof from their airline that the luggage cannot be located.
- You can’t change your mind
If your circumstances change and you can no longer go on holiday, your travel insurer won’t usually cover you
Cover will generally only be provided if a cancellation is caused by a specific insured event, and the insurer is usually entitled to require reasonable supporting evidence.
