Signposting rules to help people with PEMCs to get travel insurance

March 2020

The FCA has made new rules 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. In addition to signposting, the FCA will be working with stakeholders to try to improve consumer understanding of the travel insurance market, including producing material on PEMCs. This information will help consumers understand the implications of travelling with exclusions, and how factors such as country of travel can impact medical costs and therefore travel insurance premiums.

The changes will:
– Require firms to signpost certain consumers (usually where a customer has a declinature, exclusion or loading of £100 or more due to a PEMC) to a directory of specialist providers.
– Introduce guidance that firms selling travel insurance policies that exclude PEMCs should tell consumers whether and how these PEMC exclusions can be removed.
– Introduce guidance for product providers reminding them to assess the risk from medical conditions and calculate medical condition premiums using reliable information that is relevant to assessing this risk. This will help make sure consumers are quoted a fair premium which properly covers their circumstances.

Firms offering retail travel insurance must implement the new requirements by 5 November 2020. They will also be required to include the details of the directory on their website within 30 days of becoming aware of the directory going live.

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