Long-term ill must be offered cheap holiday insurance deals

HOLIDAYS are to become hundreds of pounds cheaper for as many as 15million travellers with long-term health conditions, under plans set out by regulators yesterday.

For the first time the Financial Conduct Authority (FCA) has told price comparison websites that they must direct such consumers away from expensive policies towards cheaper deals with specialist providers that may exist elsewhere on the internet.

Insurers and brokers have also been asked to better explain how policy prices are calculated.

The FCA said that even consumers with good understanding of medical terminology could not understand the process. The regulator conducted a study that found that holidaymakers with illnesses including cancer, diabetes and heart problems were struggling to find reasonable travel cover.

This resulted in them paying over the odds for insurance or cancelling their trips. The difference between travel insurance policies offered by major providers and those offered by lesser- known companies can be hundreds or even thousands of pounds.

Rip-off prices via mainstream sites have persisted, despite some claiming to be able to help customers with preexisting medical conditions. In the UK at least 15million people are currently living with at least one long-term health condition, the FCA said. This number is predicted to increase to around 18million over the next decade.

Fran Woodard, Macmillan Cancer Support’s executive director of policy and impact, said: “We welcome these commitments to make it easier for people with cancer to find suitable travel insurance, but we are disappointed these proposals do not go even further.”