TRAVEL insurers came under fire at the recent symposium in London after agents accused them of cherry-picking fit travellers in order to offer them cheaper premiums.
Insurers have been attacked for doubling premiums for clients over 65, while advertising cheaper policies to attract younger, healthy travellers.
Speaking initially on the problems faced by independent agents selling travel insurance, Kitts Travel managing director Chris Turner turned his fire on travel insurers and accused them of cherry-picking fit travellers and charging excessive premiums for those who were older. “Why is 65 suddenly classed as old? It is so insurers can advertise cheap travel insurance premiums, which is wrong,” he told the audience.
Turner also attacked the growth in cheap policies, citing an annual scheme he had seen for ú23 net. “No insurer can offer decent cover for that. It smacks of buying short-term business. When the claims come in, the company will point to the small print and walk away,” he said.
Turner warned that the future of many intermediaries was bleak, with further consolidation in the travel sector meaning there were fewer independent agents to market their products.
He added: “The insurance industry is painfully slow to change and as a result we have ended up with a bland product and that is a shame as travel is going into more diverse areas.” He suggested insurers move back to selection, allowing clients to pick those parts of a travel policy they wanted.
“It would take time and cost more. But what is important is quality at a fair price.”