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Holiday boost for 15 million travelers with long-term illnesses as FCA says they must be shown best deals

insurance  - Telegraph 
insurance - Telegraph

Holidays are set to become hundreds of pounds cheaper for as many as 15 million travelers with long term health conditions under new plans by the regulator. 

The Financial Conduct Authority has told price comparison websites for the first time that they must direct such consumers away from expensive policies towards cheaper deals with specialist providers which may exist elsewhere on the internet.

Insurers and brokers have also been asked to better explain how policies are calculated, after the FCA said even consumers with good knowledge of medical terminology could not understand the process. 

 It comes after the regulator conducted a study which found holidaymakers with illnesses including cancer, diabetes and heart problems were struggling to find reasonable cover, resulting in them paying over the odds or cancelling their trips. 

The difference between travel insurance policies offered by major providers and those offered by lesser known companies can be hundreds or even thousands of pounds, which for most consumers is the difference between being able to go on holiday or not. 

'Do I really need travel insurance?'
'Do I really need travel insurance?'

Rip-off prices via mainstream sites have persisted despite them claiming to be able to help customers with pre-existing medical conditions find "affordable" cover.

In the UK at least 15 million people are currently living with at least one long-term health condition, the FCA said, with this number predicted to rise to 18 million over the next decade.

Macmillan Cancer Support’s executive director of policy and impact Fran Woodard said: “We welcome these commitments to make it easier for people with cancer to find suitable travel insurance, but we are disappointed these proposals do not go even further.

'I recovered from cancer years ago - but my travel insurance still costs £550'
'I recovered from cancer years ago - but my travel insurance still costs £550'

"Improved signposting will only benefit people with cancer if, at the end of it, there is fair and affordable cover available. As it stands, this is rarely the case.”

Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said: “People with pre-existing medical conditions feel poorly served by travel insurance.

"There are specialist services out there, but often people don’t know where to find them. We’ll work with industry to point people in the right direction and help dispel some of the myths and misunderstandings to ensure this market works better.

“This will also form part of our continuing work on insurance pricing practices which are designed to lead to long-term positive changes across the market.”