Emma RadmoreThe FCA has published the findings of its review into how well consumers with medical conditions are being made aware of travel insurance available to them.
The FCA introduced rules in 2020 requiring firms to signpost consumers with PEMCs to a directory of specialist firms. On the whole, it thinks this requirement has had a positive effect, and has resulted in 21,000 additional policy sales, but found also that the impact on the market has been lower than expected.
The review says that perhaps some of the reason behind a lesser impact than expected impact is that medical costs have increased, leading to higher and therefore more challenging premiums. However, the FCA is also proposing to review, and consult later this year, on the current £100 “trigger point” for signposting, against evidence that some consumers with milder conditions are being signposted. The FCA also thinks that overall consumers are getting fair value, but is concerned that in some cases firms may be charging high premiums and getting percentage commissions with no absolute cap, which may risk consumers not getting that fair value.