The Financial Conduct Authority (FCA) plans to create a service that will direct consumers with pre-existing medical conditions to specialist travel insurance providers.
The FCA will work directly with providers to better signpost the market, following last year’s call for input on the topic revealing a lack of information about, understanding of and clarity around specialist travel insurance.
Christopher Woolard, executive director of strategy and competition at the FCA, said: “People with pre-existing medical conditions feel poorly served by travel insurance. There are specialist services out there, but, often, people don’t know where to find them. We’ll work with industry to point people in the right direction and help dispel some of the myths and misunderstandings to ensure this market works better.”
“This will also form part of our continuing our work on insurance pricing practices which are designed to lead to long-term positive changes across the market.”
Consumers who have, or have had, pre-existing medical conditions find it difficult to obtain affordable travel insurance because there is a lack of quality information on alternative options when they receive high quotes or are refused cover, according to the FCA.
Firms and consumers are also unsure about insurance terms and the risk factors considered when calculating premiums, partly due to a lack of transparency as to how prices are set.