Asked by: Satvir Kaur (Labour - Southampton Test)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions her Department has had with cancer charities on the cost of travel insurance for people with cancer.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
Treasury Ministers and officials regularly engage with a variety of stakeholders, including other departments, representatives of the insurance industry and consumer groups, on a range of issues.
The government recognises the important role of insurance products, including travel insurance, in building the financial resilience of consumers and protecting them when things go wrong. That is why the government is determined that everyone has access to suitable insurance products at the right price.
The Financial Conduct Authority (FCA) is the independent body responsible for regulating and supervising the financial services industry, including firms providing travel insurance.
Under FCA rules introduced in 2021, if a travel insurance customer is declined cover, offered cover with an exclusion, or charged a significantly higher premium based on their pre-existing medical condition, insurers are required to signpost consumers to a directory of specialist providers who may be better placed to provide cover
FCA rules also require insurers to offer products that provide fair value. This means that the price a consumer pays for a product or service must be reasonable compared to the overall benefits they can expect to receive.
The FCA has robust powers to act against firms that fail to comply with its rules, and the FCA actively monitors the insurance sector. For example, today it published a review of claims handling in home and travel insurance, highlighting examples of good practices and areas where improvements need to be made.