Here we explain how your medical history can affect the premium you're offered – and how to improve your chances of finding suitable cover at a decent price.
The cost of pre-existing conditions
In the past two years, the median amount paid for annual policies by customers with a pre-existing condition was £150 – 56% higher than those without (£96). Those who bought single-trip policies paid 88% more (£75 vs £40).
At an individual level, the differences can be much larger, depending on the nature of the medical condition as well as other factors such as age.
One customer in our survey, who has diabetes, told us they'd found they were paying roughly four times what they'd be charged if they didn't declare their condition – describing it as 'so unfair', and that 'it makes you less inclined to bother taking holidays.'
In February, research by the Money and Mental Health Policy Institute found that a customer declaring severe bipolar disorder could expect to pay over 10 times more, on average, than an identical customer without the condition – and receive quotes from fewer than half the firms.
Issues when trying to claim
Steep prices aren't the only problem. Our survey also found pre-existing medical conditions to be a common cause of claims problems.
Some 804 customers (with and without medical conditions) told us they'd made a claim in the past two years – over a third of which had been rejected, disputed or only partially paid.
Policy exclusions were the most common cause of claims disappointment – the reason that 32% were quibbled or denied, closely followed by pre-existing conditions (27%). This is particularly concerning, as it suggests many customers are learning about inadequacies in their policies when they try to claim – information that is supposed to be made clear when they buy the cover.
Find out more:How 'signposting' is supposed to help
The low visibility of specialist insurers with the expertise and willingness to cover those with certain medical conditions at fair prices is a long-running problem.
Specialist firms often don't appear on comparison websites, meaning many customers miss them and are left with an incomplete picture of the cover and prices available to them. At worst, this can mean some pay much more than they need to or assume they can't get cover at all.
In early 2021, new rules were introduced meaning that travel insurers must make customers aware of one of the directories if covering their condition(s) adds more than £100 to the premium.
Limited success
The FCA is carrying out a review of how well these measures have worked, which it expects to finish in October.
Our research suggests that signposting isn't as effective as it needs to be. Just 48% of those we surveyed who'd experienced difficulty buying insurance because of medical conditions said they had tried a directory. And customers who had used directories were more likely to have learned about them by chance – or from someone they know – than from an insurer.
The good news was more than nine in 10 who had used one said they'd got better prices from firms listed in the directories than from other companies. But it's clear that not enough customers know to try them in the first place.
'If you have any doubts... speak to your insurer'
We shared our findings with the Association of British Insurers. It responded: 'Our members work hard to ensure competitively priced products are available to as many people as possible. As part of the long-standing signposting agreement, if an insurer is unable to offer you cover, they automatically refer you to an alternative provider who can help. This process is currently under review and we are working closely with the FCA to understand how it is working and any improvements that could be made.
'Disclosing pre-existing medical conditions is key to making sure your policy meets your needs, so it is vital that all questions are answered fully and honestly. If you have any doubts about what you need to declare, you should speak to your insurer. We and our members understand that simple, straightforward communication is essential. We know that more needs to be done to ensure it is always as clear as possible, which is why we have partnered with organisations such as Fairer Finance and Plain Numbers to make sure all documents and numbers are presented in a way that is easy to understand.'
How to find the right cover
Follow these tips to increase your chances of finding a policy that meets your needs and doesn't cost the earth:
Try the directories: Check the cover: Declare medical conditions you want covered: Push back if your insurer gets a claim decision wrong:source https://www.which.co.uk/news/article/travel-insurance-market-still-not-working-for-customers-with-medical-conditions-which-research-finds-atUyc0T8SGN1