To make choosing a policy easier this summer, the ABI has today issued guidance to consumers to give them clarity on what is commonly covered in standard travel insurance policies, and importantly, what may not be covered.

15 million people are expected to go on holiday abroad this year.  Most travellers have trouble free trips.  However, for those without insurance, if disaster strikes their trip could come to a costly end.  Medical expenses, cancellation of flights, and lost baggage are just some of the things that go wrong, and they can all cost a lot of time, money and stress if appropriate travel insurance is not in place to help soften the financial blow.  The ABI’s guide will help consumers better understand travel insurance policies so that they can purchase the right policy for their needs.

Nick Starling, the ABI’s Director of General Insurance and Health, said:

“Last Summer UK residents spent over £18billion travelling abroad.  However, some travellers do not see purchasing travel insurance as a necessity, or, when they come to purchase it they are confused by the different policies on offer.  This guide points out what standard travel insurance policies will cover and why it is needed.  Hopefully when consumers plan their next trip abroad this guide will help them choose the right policy.”

Rochelle Turner, Head of Research at Which? Travel said:

"Buying travel insurance can be really complicated, particularly for those with pre-existing medical conditions or those wanting more than just medical cover.  Which? Travel research shows that, in the last year, 10 per cent of people were disappointed to find that they couldn't make a claim against the policy they had purchased.  The work that the ABI have been doing will help in the move to clarify what insurance does and doesn't cover so people are better informed and can buy policies that are right for their travel needs."

Rob Tinline, Director of Consular Services at the Foreign & Commonwealth Office said:

“Every year overseas Consular staff see cases where people don’t have adequate travel insurance and end up paying out thousands of pounds of their own money to cover their medical and other bills. Getting comprehensive insurance that covers everything you want to do on holiday is a vital part of planning your trip. We welcome the ABI initiative and hope it makes choosing a policy easier for British travellers going abroad.”

The top three things the ABI advises customers to think about when purchasing travel insurance:

•   The travel insurance market is very competitive.  However, the cheapest policy is not always the best as they often provide the least cover.  Customers should shop around and ensure the policy they purchase covers their individual needs.

•   Travellers must ensure they disclose their medical conditions to insurers so they can confirm if their policy will cover any emergency treatment they may need abroad, or whether a tailored policy would be better suited to their needs.

 •   Do not do anything on holiday that you would not normally do at home.
 Holidays are perfect for having fun, but travellers should still take necessary precautions to remain safe and not take unnecessary risks.  Drink or drug-related incidents and leaving possessions unattended, particularly valuable items, could invalidate a claim.

To view the consumer guide please visit:http://www.abi.org.uk/Information/Consumers/General/Travel_insurance___what_you_need_to_know.aspx

Notes

1.   1 and 2 statistics taken from the Office for National Statistics Quarterly Overseas Travel and Tourism publication.

2.   Enquiries to:
Liz Forster       020 7216 7444 (Mobile: 07717 578 586)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain         020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle   020 7216 7415 (Mobile: 07968 364 302)
Rachael Sharrocks        020 7216 7514 (Mobile: 07725 372 636)

3.   The ABI is the voice of the UK’s insurance, investment and long-term savings industry. It has over 300 members, which together account for around 90% of premiums in the UK domestic market.

The ABI’s role is to:
-   Be the voice of the UK insurance industry, leading debate and speaking up for insurers.
-   Represent the UK insurance industry to government, regulators and policy makers in the UK, EU and internationally, driving effective public policy and regulation.
-   Advocate high standards of customer service within the industry and provide useful information to the public about insurance.
-   Promote the benefits of insurance to the government, regulators, policy makers and the public.

The UK insurance industry is the third largest in the world and the largest in Europe. It is a vital part of the UK economy, managing investments amounting to 24% of the UK’s net worth and contributing the fourth highest corporation tax of any sector. Employing over 275,000 people in the UK alone, the insurance industry is also one of this country’s major exporters, with a fifth of its net premium income coming from overseas business.

Insurance and businesses protect themselves against the everyday risks they face, enabling people to own their own homes, travel overseas, provide for a financially secure future and run businesses. Insurance underpins a healthy and prosperous society, enabling businesses and individuals to thrive, safe in the knowledge that problems can be handled and risks carefully managed. Every day, our members pay out £155 million in benefits to pensioners and long-term savers as well as £58 million in general insurance claims.

4.   An ISDN line is available for broadcasts.

5.   More news and information from the ABI is available on our web site, www.abi.org.uk.