Pre Existing Medical Condition Travel Insurance

A proposal has been made today by the Financial Conduct Authority (FCA) to help people with pre-existing medical conditions (PEMCs) get better access to travel insurance products.

The FCA wants to provide consumers with a list of travel insurance firms that may cover consumers with serious PEMCs.  This may help customers in the following circumstances:

• Cover is offered with exclusions for a PEMC that cannot be removed
• Cover has been cancelled or declined mid-term due to a PEMC
• A consumer is offered cover with additional loading to their premium due to their PEMC

The FCA will be working with stakeholders to improve the travel insurance market.  It will be looking at producing material on PEMCs to help consumers understand travelling with exclusions to their insurance, countries that could impact their medical costs and travel insurance premiums.  The impact of travelling with exclusions and travelling without insurance.

The executive Director of Strategy and Competition at the FCA Christopher Woolard commented “The new Signposting rule is designed to help consumers look at their options when wanting to travel with PEMCs and reduce the numbers of customers paying over the odds for travel insurance.  Also, highlighting the risks of travelling without insurance including medical bills abroad”.

14.1 million consumers with a PEMC look at buying travel insurance each year and the FCA has estimated that:

• 11% bought a policy with an exclusion for their PEMC
• Almost 0.7% are declined cover

The FCA want customers with PEMCs to be able to shop around for travel insurance and the proposal is part of the FCA’s work to improve services for vulnerable consumers.

Comment

With an ageing population, this issue will become even more frequent.  Outside the EU, the need for travel insurance is clear yet for travel within Europe you may also still face hefty bills if you need medical attention even if you produce your European Health Insurance Card (EHIC) as not all services are free.  The need for travel insurance for all is clear.