The Financial Conduct Authority (FCA) has published its final “signposting” rules that all firms offering retail travel insurance must adhere to by 5 November 2020.
The changes to the Handbook aim to help consumers with more serious pre-existing medical conditions (PEMCs) better navigate the travel insurance market.
Firms that sell travel insurance will have to signpost consumers to a directory of specialist firms that provide this type of insurance.
Currently, some consumers with PEMCs have problems navigating the market and finding affordable cover for their conditions.
Some are declined cover, only offered cover that excludes their PEMC or offered what they consider to be unaffordable premiums.
The changes aim to reduce the number of uninsured consumers and those who are significantly overpaying for travel insurance.
The FCA will introduce guidance for firms reminding them to assess the risk from medical conditions and calculate medical condition premiums using reliable and relevant information. It said this will help to make sure consumers are quoted a fair premium which properly covers their circumstances.
Graeme Trudgill, executive director of the British Insurance Brokers’ Association (BIBA), said the existing Signposting Agreement on Age and Insurance has helped many thousands of older people find the insurance they need through BIBA’s Find-Insurance Services.
“BIBA has been in discussions with the FCA about the development of our successful Find-Insurance Services, and we are ready to make the changes required and will be looking to apply to be listed as a medical cover firm directory,” he stated.