On 15 July 2019, the Financial Conduct Authority (FCA) published Signposting to travel insurance for consumers with medical conditions (CP19/23). CP19/23 continues the work undertaken by the FCA over the past few years on ensuring that vulnerable customers can access insurance. In June 2017 the FCA published a Call for Input on access to insurance (feedback to this was published in July 2018). The feedback found that some consumers struggle to get insurance cover for pre-existing medical conditions (PEMC).

The FCA is seeking to improve access to insurance for consumers with PEMC by making it easier for consumers to be paired with insurance providers who have an appetite to cover individuals with PEMC.

This consultation seeks views on the following proposed changes to the FCA Handbook:

  • a new ‘signposting’ rule requiring firms, in certain circumstances, to give consumers details of a directory of travel insurance firms that have the appetite and capability to cover consumers with more serious PEMCs; and
  • new guidance to clarify firms’ obligations to travel insurance customers with PEMCs.

The FCA are also looking to introduce a package of proposals to work together to achieve optimal outcomes to consumers. They wish to work with:

  • the Money and Pensions Service to improve consumer understanding of travel insurance policies for those with PEMCs, helping consumers understand what factors affect their pricing, and reiterate the importance of insurance; and
  • FCA stakeholders to improve the wording use in the medical screening process, aiming to make the process as easy as possible for consumers.

The deadline for responses to the consultation is 15 September 2019. The feedback will be considered and a policy statement with the FCA’s response will be published along with final rules.

View: FCA publishes CP19/23: Signposting to travel insurance for consumers with medical conditions