The British Insurance Brokers’ Association (BIBA) believes it has a significant role to play in the signposting initiative being carried out by the Financial Conduct Authority (FCA). Here BIBA executive director Graeme Trudgill offers insights from the trade body.
First off, here’s where the FCA is at in terms of progress: “Since we issued the Feedback Statement in July 2018, we have been working with stakeholders to explore different options for signposting people with pre-existing medical conditions (PEMCs) to travel insurance providers that are able to provide them with suitable insurance.”
It’s been previously found that consumers who had received a high quote or had been refused cover tend to assume that they are uninsurable given the lack of quality information on alternative options. This is among the reasons why the watchdog is collaborating with key industry stakeholders to create a new signposting service.
“We have carried out an extensive programme of engagement with industry, trade bodies, consumer organisations, and charities, through bilateral meetings and larger discussion forums,” noted the FCA, which is keen to understand how consumer outcomes can be improved.
“This has enabled us to refine our understanding of the issues consumers with PEMCs are facing and how we might be able to address them, for example being declined travel insurance, dealing with exclusions for PEMCs, and receiving quotes which may be unexpectedly high.”
According to the regulator, it has been exploring and analysing possible options for signposting structures. These include a multi-lateral approach that provides signposting across the industry, and the FCA is of the view that this option would be the most effective and efficient.
Commenting on the update, Trudgill stated: “We believe an outcome similar to the multi-lateral approach taken in the ‘agreement on age and insurance’ would be the best way forward in helping customers. This existing voluntary agreement directs a firm who cannot assist a customer to signpost them to a provider or suitable signposting service that can offer suitable insurance.
“BIBA has been running a successful signposting service for older people under this agreement since 2012 and received over 600,000 enquiries on age and insurance since then. We believe this successful model can be replicated to help travel insurance customers with pre-existing medical conditions.”
Meanwhile the FCA plans to consult on the proposals it is developing before summer 2019.
