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FCA rules for travel insurance sales

Link(s): https://www.fca.org.uk/publication/policy/ps20-03-addendum.pdf

Context

As a reminder, the FCA is making it a requirement to signpost travel insurance customers with more serious medical conditions to a Medical Cover Firm Directory under certain circumstances from 26th April 2021.

Key points to note

From 26th April 2021 the requirement to actively signpost a customer to a Medical Cover Firm Directory is triggered when a firm:

  • Declines, or otherwise does not offer, a consumer a quotation owing wholly or partly to a medical condition;
  • Cancels a consumer’s policy due (wholly or partly) to a medical condition;
  • Offers a policy with a medical condition exclusion which cannot be removed from the policy; 
  • Offers a policy with a medical condition additional premium of £100 or more; and/or
  • Offers a policy in respect of which the medical condition premium is not known.

If any of the above criteria applies to a travel insurance risk, firms must provide:

  • The contact details of the Medical Cover Firm Directory;
  • The purpose of the Medical Cover Firm Directory; and
  • The potential benefits of accessing the Medical Cover Firm Directory.

Next actions

Affected firms must comply with the above from 26th April 2021.  There are currently two approved Directories, one hosted by the Money Advice service and the other hosted by the British Insurance Brokers Association (BIBA).