Travel insurance complaints have surged, reaching one of the highest levels in recent years, akin to those during the Covid-19 pandemic.
- The Financial Ombudsman Service reported 4,466 complaints in the last year, a significant increase from pre-pandemic levels.
- Many complaints arise from dissatisfaction with insurers’ handling, especially regarding undisclosed medical conditions and emergency assistance.
- Policyholders express frustration over flight delays, baggage issues, and inadequate explanations of terms by insurers.
- Calls are made for insurance firms to offer clearer communication and fair treatment to policyholders.
Travel insurance complaints have reached a significant peak, rivalling those observed during the Covid-19 pandemic. The Financial Ombudsman Service has revealed that 4,466 complaints were lodged in the past financial year. This figure markedly surpasses the 3,745 complaints from the previous year and the 2,510 prior to the pandemic in 2019-20.
The persistent rise in complaints is chiefly driven by policyholders’ dissatisfaction with insurers, particularly related to claims being declined. Many individuals have reported insurers denying claims due to alleged non-disclosure of medical conditions. Furthermore, there is a notable discontent concerning the levels of emergency assistance provided when policyholders fall ill abroad.
There is growing concern among consumers over the handling of travel-related issues such as delayed or missed flights and lost or stolen luggage. These issues continue to keep complaint levels elevated beyond pre-pandemic figures, indicating ongoing struggles with service delivery by insurance providers.
Abby Thomas, chief executive and chief ombudsman at the Financial Ombudsman Service, highlighted the importance of consumers understanding their travel insurance policies. “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,” she stated.
Experts call for improved transparency in policy terms and conditions, urging firms to treat customers fairly and ensure they comprehend their policies thoroughly. Jenny Ross, editor at Which? Money, expressed concerns over the rise in complaints, stressing that many issues could be indicative of broader problems within the industry.
Ross urged the Financial Conduct Authority to intensify its oversight of insurers, advocating for stringent measures against companies that consistently fail to meet expectations. She noted, “These figures are likely to be a drop in the ocean, given that many people won’t escalate their complaints to the Ombudsman.” This observation suggests there might be a wider issue with insurer accountability and customer satisfaction.
The surge in travel insurance complaints underscores a critical need for the industry to enhance communication and service standards.
