FCA signposting solutions: Travel insurance for customers with medical conditions

Let travel insurance specialists, goodtogoinsurance.com, take the compliance strain...

New FCA signposting requirements surrounding travellers with pre-existing medical conditions are about to come into force - expected live date September 2020. 

Whilst it will become mandatory for all companies and organisations providing travel insurance to signpost certain clients to a specialist provider directory, those referrals receive zero commission. Which is precisely where goodtogoinsurance.com come in! 

As specialists in this field, we’ve been ahead of the curve in preparing a host of options that allows partners to accomodate these requirements with as minimum fuss as possible.

What can goodtogoinsurance.com do for you? 

  • Remove the headache by providing an immediate solution to these mandatory requirements
  • Provide front end / back office branded, no cost websites with all regulatory touch points and client information seamlessly integrated
  • Pay competitve monthly commission on all travel insurance sales through goodtogoinsurance.com for clients you may have declined to cover or are obliged to signpost to the directory
  • Signpost clients to the directory, on your behalf, for any quotes not taken up through goodtogoinsurance.com
  • Keep you abreast of future compliance requirements whilst taking care of system and process updates

Please note these requirements are mandatory and it will be considered a breach of FCA rules if these requirements are not met.

What are the timescales?

If your company or organisation is affected by these changes you will be required to include details of the directory on your website within 30 days of it going live, which is expected to be sometime in September 2020.  All other new requirements, such as having to refer customers whose medical premium is £100 or more, are expected, by the FCA, to be implemented on or before 26th April 2021.

For more information on how we can help you meet these new regulatory requirements and earn commission at the same time, please complete the enquiry form and we'll be in touch to discuss.

Background to the changes

Some consumers with Pre-Existing Medical Conditions (PEMC) have difficulty navigating the market and finding affordable travel insurance cover for their conditions.

Some are declined cover, only offered cover that excludes their PEMC or offered what they consider to be unaffordable premiums. 

In July 2019, the FCA consulted on new requirements for firms to signpost certain consumers with PEMCs to a directory of travel insurance firms that are able and willing to cover consumers with more serious PEMCs.

The FCA also consulted on new guidance to clarify how they expect firms to treat travel insurance customers with PEMCs.

They received 37 responses to the consultation from a range of stakeholders. These consisted of both mainstream and specialist insurance firms, including goodtogoinsurance.com, trade bodies, medical screening companies, charities, consumer organisations and price comparison websites.

What is changing?

  • New requirement for firms to signpost certain consumers with PEMCs, over the phone and online, to a directory of specialist providers from September 2020
  • Introduction of guidance for firms selling travel insurance policies that exclude PEMCs on how to tell consumers whether, and how, these PEMC exclusions can be removed
  • Introduction of guidance for firms reminding them to assess the risk from medical conditions and calculate medical condition premiums using reliable information relevant to assessing that risk. This will help ensure consumers are quoted a fair premium which properly covers their circumstances

Who do the changes apply to?

  • All firms who offer retail travel insurance including Insurers, Lloyd’s Managing Agents, Intermediaries and Appointed Representatives
  • Banks who offer packaged bank accounts which include travel insurance
  • Insurance industry trade associations
  • Charities, in particular medical charities
  • Consumer organisations
  • Consumers, primarily those with PEMCs

New mandatory signposting requirements to be in place by April 2021 in the following scenarios:

  • Declines - Where a consumer is declined or otherwise not offered cover, or has their cover cancelled mid-term, due to a PEMC
  • Exclusions - Where a consumer is offered cover with an exclusion for a PEMC that cannot be removed
  • Additional premiums - Where a consumer is offered cover with a PEMC loading to their base premium, of £100 or more, due to their PEMC

What are the aims of these changes?

  • Reduce the number of uninsured consumers who currently face a choice of not travelling or risk having to pay significant costs, including medical bills abroad
  • Reduce the number of consumers with PEMCs who are significantly overpaying for travel insurance
  • Reduce the number of consumers who feel frustrated and unable to navigate the market
  • Increase consumer confidence and trust in the travel insurance market

What can goodtogoinsurance.com do for you? 

  • Remove the headache by providing a solution to these mandatory requirements
  • Provide front end / back office branded solutions with all regulatory touch points and client information seamlessly integrated
  • Pay commission on all travel insurance sales through goodtogoinsurance.com for clients you may have declined to cover or are obliged to signpost to the directory
  • Signpost clients to the directory, on your behalf, for any quotes not taken up through goodtogoinsurance.com
  • Keep you abreast of future compliance requirements whilst taking care of system and process updates

Get in touch to find out more about our signposting options

Please complete our partner enquiry form and we'll be in contact to discuss.