Biba supports FCA travel insurance review delay as directory enquiries double

The rules designed to help consumers with more serious pre-existing medical conditions came into force in April 2021. Under certain circumstances (see box) regulated firms have to signpost to either Biba’s Travel Medical Directory or an offering by the Money & Pensions Service.

The review was postponed last week due to the impact of the Covid-19 pandemic on travel and the regulator’s belief extra time will deliver better evidence. It will now be held in April to October 2023.

Graeme Trudgill, executive director at Biba told Insurance Age: “We understand the reasons why the FCA wants to wait another year and are happy with that,” he confirmed.

“By waiting another year they will have a lot more data and information, it makes sense to do that.

“We are supportive of the delay because of the way travel was so seriously restricted during Covid times.”

According to Trudgill Biba will remain in contact with the FCA to deliver ongoing commentary in the interim with its system “working very well”.

“We have invested in the call centre and the IT and we will be having a new website later in the year as well,” he said.

While acknowledging that there has been an increase in travel bookings he highlighted that Biba’s Travel Medical Directory service had seen a doubling in enquiries year-on-year from around 2,000 in May 2021 – the month after the rules went live – to about 4,000 this May.

“We are pleased that despite the lockdown, in the 13-month period [from May to May] 41,000 people were helped to try to get the cover that they want,” he calculated.

Confidence

The rising confidence in travel has been matched by more insurers offering cover. Biba now has 29 insurers on its directory.

“We have a vetting process to approve who we believe to be a specialist firm which is what the FCA wants,” Trudgill detailed saying the breadth provided “good choice for customers”.

“Some specialise in cancer, some in other conditions, so whatever someone’s medical condition we would hope we would be able to find them quotations,” he said.

“The progress has been that when it first launched there were 19 insurance firms that were vetted. Since then we have approved a further 10.”

The enquiries have been spread across different members with undiagnosed conditions the most challenging to find an insurance solution for, Trudgill continued.

“The vast majority of enquiries that we have had we have been able to accommodate,” the Biba leader stated.

Communication

The FCA rules apply to regulated firms and Trudgill said the next stage would be a communication programme with other organisations and individuals such as charities, the media, travel companies and MPs to highlight the signposting solution.

“We want more and more firms to signpost to the directory. The greater awareness the more people we are going to help,” Trudgill recounted.

“We have a contact programme to make them aware that people can get this cover. We are only a year in and there is still a lot of work to do.”

Concluding: “It is all about getting the word out so that people who have different medical conditions know that they can come to us and we can help them.”

For all the latest industry news direct to your inbox, sign up for our daily newsletter.