FCA hits out at travel insurers who ‘poorly serve’ ill customers

Finance: Call for action to help people with pre-existing medical conditions

People with pre-existing medical conditions feel “poorly served” by travel insurance providers, the City regulator has said.

The Financial Conduct Authority (FCA) said they find it difficult to access the market.

It has heard evidence it can be hard for people who have or have had certain medical conditions to find affordable travel insurance – with some assuming they are “uninsurable”.

Macmillan Cancer Support also said those who have had cancer are being penalised by “one size fits all” policies, often costing thousands of pounds.

The FCA now aims to work with the industry to create a service to redirect customers to specialist providers.

At least 15 million people in the UK currently live with at least one long-term health condition and this is expected to rise to 18m over the next decade, the FCA said.

Christopher Woolard, executive director of strategy and competition at the FCA, said: “People with pre-existing

“Thousands of people who have had cancer – even 10 years ago – continue to be penalised by one size fits all policies

medical conditions feel poorly served by travel insurance. There are specialist services, but often people don’t know where to find them.”

In June 2017, the FCA made a “call for input” to gather more evidence and decide how best to help people with preexisting medical conditions obtain affordable travel insurance.

The regulator said themes which had emerged included a lack of information on alternative options available after people had received a high quote or been refused cover. Lack of pricing transparency, the risk factors which drive quotes and how premiums are calculated also caused concern.

Macmillan Cancer Support said in one case a married father of three spent around £4,000 on travel insurance to take his family on holiday to the United States after his first major surgery.

It also said a woman in remission has been quoted premiums of £2,000, despite being given the all-clear.

Fran Woodard, executive director of policy and impact, said: “Thousands of people who have had cancer – even 10 years ago – continue to be penalised by one size fits all policies.

Raluca Boroianu-omura, of the Association of British Insurers (ABI), said: “We will continue to work with the FCA following today’s proposals.

“Travel insurance’s main purpose is to cover emergency medical costs overseas. Insurers pay out medical claims of around £200 million a year, making medical history very relevant.”