Co-op Travel Insurance
Co-op Insurance has launched a travel insurance product that offers cashless medical expenses cover for all ages and medical conditions, which means customers will not have to pay out themselves for any medical treatment upfront.
A survey by Co-op found 62% of holidaymakers who have claimed on their travel insurance said they had to cover the costs upfront themselves and then claim these costs back at a later date.
With the average travel insurance claim now being £2,090, a quarter of those polled (26%) had had to turn to family members to borrow money in order to pay for their healthcare treatment. A further one in four (25%) had to take money out of their savings and one in ten (10%) ended up in debt.
The Co-op product also offers access to an online medical consultation with a doctor, 24/7, from anywhere in the world. Users can receive prescriptions, referrals and fit-for-work notes in this way too.
Comment: Mark Summerfield, chief executive of Co-op Insurance, said the company had recognised a gap in the market and it was the first general insurer to pay medical expenses up front, ensuring its customers were not left out of pocket at what can already be a stressful time.
Given that private medical insurance (PMI) has long paid direct, leaving customers with nothing to pay out of their own pocket, that is a surprising claim. However, this new approach is a very logical and doubtless very welcome move that is sure to be followed by other travel insurers too.
Looking at the wider implications, for health insurers, it has always been a surprise that many help their customers only as long as they stay in the UK but then abandon them as soon as they go abroad – even on a day trip. A PMI linked travel policy is not new but this angle could encourage more PMI insurers to look at this market too.
Certainly, cashless medical expenses cover should be popular with many customers.
Plus points: Travel insurance that doesn’t require customers to pay first, then claim back.
Not so plus points: Many travel insurance customers may not even realise that was how travel insurance often worked.
Website: http://www.co-opinsurance.co.uk.
Rating (max 10): Innovation: 8. Overall: 8. Gold
Tags: Other; Co-Operative.