How to get travel insurance despite underlying medical conditions

Millions of vacationers are being priced out of their travel insurance because of underlying illnesses or simply being old, new research suggests.

These groups are not properly directed to specialist insurance brokers, despite rules introduced in 2021 by the Financial Conduct Authority to help those who fall into these categories. Which? say.

It’s because the insurance executives will be testifying to the Treasury Select Committee this afternoon.

The FCA rules require travel insurance providers to refer customers with pre-existing medical conditions to a list of specialist companies offering this type of insurance.

Which? found that of just over 4,000 people who took out annual travel insurance in the past two years, the median price paid for those declaring medical conditions was £150 – 56 per cent more than those with no conditions.

Graeme Trudgill, executive director of the British Insurance Brokers’ Association, said: “The travel insurance market has changed since the pandemic and there is much less insurance capacity available.

“It’s also true that more people have been unable to have regular medical checkups due to the impact of Covid, adding to the frequency and scale of claims after travel fully reopens.”

One person with well-controlled diabetes said they would pay about four times as much if they didn’t declare their condition, which they described as “unfair.”

More than a third of those with a pre-existing medical condition said they had experienced difficulties obtaining travel insurance because of their condition in the past three years.

This includes expensive premiums, insurers refusing to cover their terms, and problems claiming.

Tom Marsland, policy manager at the charity Scope, said: ‘Life costs more when you’re disabled, and so do essential costs such as travel insurance. With inflation rising, these costs have only gotten worse.

“The sky-high premiums can make it very difficult for the disabled to find insurance they can afford. Sometimes disability coverage is denied altogether.

‘People with a disability must be able to take out affordable insurance just like everyone else. There needs to be a lot more transparency around pricing and how risks are assessed.

‘We want insurers, regulators and the government to work together to ensure that disabled people are no longer unfairly punished.’

Age is also a factor when it comes to paying higher premiums, with the largest increases seen for travelers aged 75 or over, even if they are in good health.

The median price paid by those aged 75 or over for annual cover was £300 – 65 per cent (or £118) higher compared to customers aged 65-74 (£182), and more than double that of the amount paid by persons aged 55 and over. 64 (£142).

Older travelers are also more likely to have medical conditions, often driving premiums even higher.

“Unfortunately, older people and those with medical conditions are claiming more often, this alongside rising medical claim costs, inflation, exchange rate challenges and holiday prices have impacted premiums,” Trudill said.

This suggests that rules introduced in 2021 by the Financial Conduct Authority to ‘signpost’ specialist travel insurers will have limited impact.

Seven percent of people say they skipped buying insurance because of the high cost, missing out on crucial protection if something goes wrong in their absence.

Trudgill said: ‘Insurers must assess the likelihood of an insured falling ill before travelling, causing cancellation or while away requiring treatment abroad.’

Who is to blame?

A spokesperson for Which? said: ‘We are concerned that price comparison sites are not directing travelers with medical conditions to specialist listings.

“But there’s also a wider problem with insurers offering more general policy coverage for older travelers or people with medical conditions.”

A spokesperson for Compare the Market said: ‘Our process complies with the FCA’s signage rules and we clearly demonstrate the need to provide accurate answers throughout.

“We always strongly encourage customers to be completely honest in their disclosures to ensure the best possible chance of success if they ever need to make a claim.”

A spokesman for the Association of British Insurers, a trade association for UK insurance companies, said: ‘Our members work hard to ensure that competitively priced products are available to as many people as possible.

‘As part of the long-standing signage agreement, you will be automatically referred to an alternative provider who can assist you if an insurer is unable to provide you with coverage.

“This process is currently under review and we are working closely with the FCA to understand how it works and what improvements can be made.”

How to find the right coverage if you are elderly or have a medical condition

Try folders

Less than half of the respondents to the Which? survey who had difficulty obtaining insurance because of their medical condition over the past three years had tried a specialized directory.

The British Insurance Brokers’ Association has specialist lists for clients with medical conditions.

Most people who used these directories were offered better prices from companies listed on them than elsewhere.

Check the cover

Read the policy and the coverage it provides carefully, as you may end up paying for things you don’t need.

The cheapest policy does not always offer the best value for money.

Check the policy terms to see which items on your cover wish list are explicitly stated or excluded. Contact the insurer if anything is unclear.

Declare any medical conditions you want covered

If you don’t tell your insurer about your medical condition – whether it’s a mainstream company or a specialty directory company – then you’re unlikely to be covered.

If in doubt about the position of the insurer, please contact them.

Push back if your insurer gets a claims decision wrong

About 43 percent of customers whose receivables weren’t paid in full were given no reason why.

If your insurer refuses to pay out, you are entitled to a clear explanation. If this is not satisfactory, please submit a written complaint.