Insurance Industry: Travel Premiums

Lord Sharkey Excerpts

Tuesday 28th June 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, travel insurance is fundamentally designed to cover medical expenses, where age can be a risk factor. The Government do not intend to intervene in commercial decisions made by insurers, as this could damage competition in the market. The new rules that I referred to in my Answer came into place in April 2021—after the example the noble Lord gave. They mean that firms need to signpost consumers to a directory of specialist providers if the medical premium they are being charged is significantly higher than normal. The Government continue to want to promote financial inclusion, and have the Financial Inclusion Policy Forum in place to ensure that they consider all questions around financial inclusion.

[Lord Sharkey (LD)]

My Lords, people with serious pre-existing medical conditions often find it difficult to get travel insurance. As the Minister has said, in April last year the FCA introduced new signposting rules to make it easier. Can the Minister reassure the House that insurance companies and brokers are currently complying with the signposting rules and that this signposting is as prominent as it should be?

[Baroness Penn (Con)]

My Lords, it is for the Financial Conduct Authority to regulate the market and ensure its rules are being followed. It has the resources to do so, and I will follow up with the FCA to see its judgments on that.