The Financial Conduct Authority (FCA) has confirmed, following its post implementation review, that the travel insurance signposting initiative is working as intended.
The review assessed the effectiveness of requirements rolled out in 2021 to aid consumers with serious pre-existing medical conditions (PEMCs) in finding appropriate travel insurance.
A key element is the directive for consumers to be referred to a specialist directory, such as the British Insurance Brokers’ Association’s (BIBA) online travel medical directory within BIBA’s broader ‘find insurance’ service.
The FCA’s evaluation, which was previously rescheduled to ensure a better information set, affirmed that these signposting services are benefitting consumers, boosting BIBA’s longstanding advocacy for comprehensive signposting to improve customer access to suitable cover.
“We have seen from the increasing enquiries to our service and from the feedback received that signposting helps consumers, and it’s encouraging that the FCA’s findings support this,” BIBA chief executive Graeme Trudgill (pictured) noted. “Signposting is a win-win solution – it helps by connecting consumers to specialist providers and brokers, and it helps the industry’s reputation.
“Specialist cover is often available for people with non-standard insurance needs, but they don’t know where to go. Signposting to our travel medical directory, or to the wider BIBA Find Insurance Service, is a simple solution enabling firms to fulfil their regulatory obligation.”
Meanwhile, the review also signalled an upcoming consultation by the FCA on the adjustment of the premium threshold.
Commenting on the move, BIBA regulation director David Sparkes said: “This is a sensible step that we have called for following members’ feedback that the current level is too low, triggering a larger number of cases than was intended.
“Reviewing the level will ensure that as many consumers with serious PEMCs as possible are signposted to specialist directories to enable them to access the best outcomes for their needs.”
According to BIBA, over 184,000 enquiries have been logged since its travel medical directory was introduced.
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