Travel insurance complaints hit highest level since pandemic, says ombudsman

Complaints about travel insurance have surged by nearly a fifth (19%) over the past year, figures from the Financial Ombudsman Service (FOS) reveal.

In the 2023/24 period, the FOS received 4,466 complaints. The service highlighted that this figure has only been topped once in the last ten years, which was during the 2020/21 period when the coronavirus pandemic caused unprecedented travel chaos.

The bulk of these grievances stem from insurers rejecting claims, according to the FOS. The FOS is noticing an uptick in issues such as policyholders being informed they failed to adequately disclose medical conditions, dissatisfaction with emergency support after falling sick abroad, and frustrations over delayed or missed flights, not to mention the distress of lost or stolen baggage.

Abby Thomas, the chief executive and chief ombudsman at FOS, said: “With the holidays upon us, and millions of families heading overseas on their summer breaks, it’s crucial that people taking out travel insurance know what they are signing up to.”

“It’s concerning to see so many people dissatisfied with their insurance provider. That’s why it’s so important firms take the time to explain terms, treat people fairly, and ensure everyone understands their policy. If people aren’t happy with how they have been treated they should contact our free, independent service and we’ll investigate.”

A spokesperson for the Association of British Insurers (ABI) stated: “Insurers always want to provide the best possible service for their customers. When complaints are made, they will look to learn from them, including working closely with the FOS to understand any necessary improvements.”

“It’s vital that customers understand what they’re covered for and they make sure they have the right policy to meet their needs. Travel insurance is primarily designed to cover the cost of any emergency medical treatment needed overseas, so it’s important insurers fully understand the details of any pre-existing conditions.”

“Not disclosing, or only partially disclosing, pre-existing medical conditions risks invalidating a claim, so customers should answer all medical justified questions accurately and honestly. Insurers recognise the importance of clear communication and our members are always working on improving the way they set out policy information so that it is as clear and accessible as possible.”

The Financial Ombudsman Service (FOS) offers advice to help individuals choose suitable insurance and avoid future issues:.

Read the small print

It’s crucial to go through the policy terms and conditions carefully, this includes being clear about what medical history must be disclosed to your insurer and understanding which activities the policy covers.

Understand what is not covered

Travel insurance policies typically outline the specific events covered and any general exclusions. Just because there isn’t a specific exclusion, doesn’t mean you’re automatically covered.

Don’t mistake travel insurance for private medical insurance

They’re not the same thing. Most policies will require you to seek treatment in a public hospital, and may not cover private treatment unless it’s necessary, such as if there are no suitable public hospitals nearby.

You may need to tell your travel insurer about medical conditions, even if you have fully recovered.

Check what your insurer needs to know about pre-existing medical conditions, otherwise, you may not be covered.

Your travel insurer may not agree to fly you back to the UK if you become unwell abroad

They’ll decide whether it’s medically necessary, and might ask you to receive treatment abroad until you’re well enough to return home.

Travel insurance may not cover missed flights caused by security delays, airport evacuations and/or problems with visas and passports

Policies typically only cover missed flights due to a specific list of insured events, such as public transport failures or delays, accidents or breakdowns of the vehicle you’re travelling in, another vehicle’s accident or breakdown on the motorway, strikes, industrial action or adverse weather conditions.

If your circumstances change and you can no longer go on holiday, you may not necessarily be covered

If you decide against travelling, your insurance might not cover you. Coverage is usually only provided if a cancellation is caused by a specific insured event, and insurers are generally entitled to require reasonable supporting evidence.

There are some key points to know about lost luggage

Travel insurers will generally require a policyholder to obtain a property irregularity report from their airline while still at the airport and provide proof from their airline that the luggage cannot be located before considering a claim.