Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that travel insurance companies are (a) communicating clearly to their consumers and (b) treating them fairly.

The Government is in continual dialogue with the insurance sector to understand and influence its contribution to handling this unprecedented situation.

The Financial Conduct Authority (FCA) rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. In addition, the FCA has said that, in light of COVID-19, insurers must consider very carefully the needs of their customers and show flexibility in their treatment of them. The Government is working closely with the FCA to ensure that the rules are being upheld during this crisis and fully supports the regulator in its role.

The FCA have also issued guidance for travel insurance customers, which can be found on their website.

We have discussed with insurers the importance of insurance cover for Covid-19 in restoring consumer confidence to travel again. Firms assure us that they will look to offer cover again where and when they can. They are monitoring announcements by Government and reviewing their position as the situation evolves. We will continue to monitor this situation closely.