Andrew Tolman, travel expert at Allianz UK, urges brokers to "promptly inform" policyholders of the risk of travelling to countries on the FCDO's banned list, as doing so may invalidate their insurance. This comes as the discussion surrounding FCDO travel guidelines reaches new heights.
UK travellers have been cautioned about visiting a variety of countries and territories by the FCDO, which has raised concerns over “safety, political conflicts, and natural disasters,” according to The Independent. Travellers are also advised to exercise varying degrees of caution depending on their destination.
As The Independent reports, the FCDO has issued travel warnings that include advice against "all travel" and "all but essential travel" to parts or whole countries across Europe, Africa, Asia, and South America. Currently, 73 out of 226 countries and territories are flagged as having “no-go zones.”
If policyholders still wish to travel to countries on the FCDO's banned list, brokers should provide a reality check.
Tolman stressed: “It’s crucial to emphasise that these advisories are in place for their safety, and travelling against such advice could result in significant risks, both health-related and financial.” He recommends brokers take proactive steps by “encouraging policyholders to consider alternative destinations where travel is deemed safe.”
Travelling against FCDO advice will not only invalidate insurance but may also result in “a lack of consular support in the event of an emergency overseas”, the publication stated.
Tolman told Insurance Business that: “FCDO travel bans typically mean that travel insurance policies may not cover medical emergencies or other claims if policyholders choose to travel to these destinations. While some unforeseen circumstances might be covered under specific conditions, travelling against FCDO advice generally voids coverage.”
He implored that brokers “ensure policyholders review their policy details and the Insurance Policy Information Document (IPID) to understand the implications of travelling to banned destinations.”
For brokers, it’s essential to get policyholders on board with this understanding.
Preparing for the potential of claims disputes starts with proper preparation and clear communication.
Tolman advised that brokers “ensure policyholders are fully informed about their travel insurance terms and conditions, particularly regarding FCDO advisories.” He also stressed the importance of brokers protecting themselves by maintaining “clear records of communication with policyholders regarding travel bans and the impact on insurance coverage.”
He suggested that brokers “offer guidance on alternative coverage options or destinations to help mitigate disputes.”
To stay ahead of evolving travel restrictions and FCDO advisories, brokers must remain proactive and adaptable.
Tolman advised that brokers should “stay updated with the latest travel guidance and promptly communicate any changes to policyholders.” In addition, he said that brokers can offer insurance products that reflect the current climate, such as “flexible policies that cover cancellations due to sudden travel advisories.” According to Tolman, “by educating policyholders about the importance of travel insurance and its limitations, brokers can help manage expectations and reduce confusion.”
Staying proactive and informed is crucial for brokers as FCDO travel advisories continue to cloud the travel insurance landscape. By offering clear communication, alternative options, and flexible coverage, brokers can mitigate risks and prevent potential claims disputes. It is essential that brokers act now - review policies, educate clients, and remain adaptable to future changes - to ensure a smoother and safer travel experience for all.
