How to get travel insurance despite underlying medical conditions

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

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

It comes as insurance bosses are set to give evidence to the Treasury Select Committee this afternoon. 

The FCA rules require travel insurance providers to direct customers with pre-existing medical conditions to a directory of specialist firms that provide this type of insurance. 

Which? found that of just over 4,000 people who took out an annual travel insurance policy in the past two years, the median price paid for those declaring medical conditions was £150 – 56 per cent more than those without conditions. 

Graeme Trudgill, executive director of the British Insurance Brokers’ Association, said: ‘The travel insurance market has changed since the pandemic with far less insurance capacity available. 

‘It is also the case that more people have been unable to have regular medical checks because of the impacts of Covid, contributing to the frequency and size of claims after travel fully reopened.’

One individual with well-controlled diabetes said they were paying roughly four times what they would be charged if they did not declare their condition, which they described as ‘unfair’.

More than a third of those with a pre-existing medical condition said in the last three years, they had encountered problems buying travel insurance because of their condition.

This includes expensive premiums, insurers declining to cover their conditions and issues when claiming.

Tom Marsland, policy manager at disability equality charity Scope, said: ‘Life costs more when you’re disabled, and that includes essential costs like travel insurance. With spiralling inflation, these costs have only gotten worse.  

‘Sky high premiums can make it really difficult for disabled to find insurance they can afford. Sometimes disabled people are denied cover altogether.

‘Disabled people must be able to get affordable insurance like anyone else. There needs to be much more transparency around pricing and how risk is being assessed.

‘We want insurers, regulators and the government to work together to make sure disabled people are no longer being unfairly penalised.’

Age is also a factor when it comes to paying higher premiums, with the biggest hikes seen for travellers aged 75 or older, even if they are in good health. 

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

Older travellers are also more likely to have medical conditions, which means premiums are often bumped higher still.

‘Unfortunately older people and people living with medical conditions do claim more often, this alongside rising medical claims costs, inflation, exchange rate challenges and holiday prices has affected premiums,’ Trudill said. 

This suggests rules introduced by the Financial Conduct Authority in 2021 to help ‘signpost’ specialist travel insurers are only having a limited impact.  

Seven per cent of people say they have skipped buying insurance because of the high costs – leaving them without crucial protections should things go wrong while away.

Trudgill said: ‘Insurers need to assess the likelihood of an insured person becoming ill before they travel, causing cancellation or while they are away and needing treatment overseas.’

Who is to blame?  

A spokesman from Which? said ‘We’re concerned that price comparison sites aren’t directing travellers with medical conditions to specialist directories. 

‘But there’s also a wider issue with insurers more generally offering policy cover for older travellers or those with medical conditions.’

A spokesman from Compare the Market, said: ‘Our process is compliant with the FCA’s signposting rules, and we clearly display 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 being successful if they ever need to make a claim.’

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

‘As part of the long-standing signposting agreement, if an insurer is unable to offer you cover, they automatically refer you to an alternative provider who can help. 

‘This process is currently under review and we are working closely with the FCA to understand how it is working and any improvements that could be made.’

How to find the right cover if you are older or have a medical condition

Try directories

Fewer than half of respondents to the Which? survey who had difficulty buying insurance because of their medical condition in the last three years had tried a specialist directory.

The British Insurance Brokers’ Association have specialist directories for customers with medical conditions.

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

Check the cover

Read the policy and what cover it will provide carefully as you may find you are paying for things you do not need. 

The cheapest policy may not always offer best value for money.

Check the policy wording to see which items on your cover wishlist are explicitly mentioned or excluded. Contact the insurer if anything appears unclear.

Declare medical conditions you want covered

If you do not tell your insurer about your medical condition – whether they’re a mainstream firm or one from a specialist directory – then it’s unlikely to be covered.

If you are in any doubt about the insurer’s position, contact them.

Push back if your insurer gets a claims decision wrong

Some 43 per cent of customers whose claims weren’t fully paid were not given a reason why. 

If your insurer refuses to pay out, you are entitled to a clear explanation. If this is not satisfactory, make a complaint in writing.