Complaints over travel insurance have reached one of the highest levels in the last decade, the Financial Ombudsman Service revealed today (Tuesday).
A total of 4,466 complaints were received in the last financial year.
The only time the figure has been higher was when complaints surged due to disruption caused by the Covid pandemic in 2020-21.
More: European flight cancellations soar by 46% in June
Agency shut down with holidaymakers owed almost £600,000 in refunds
There were 3,745 complaints brought to the Financial Ombudsman in the previous financial year. The figure was just 2,510 prior to the pandemic in 2019-20.
Cases primarily driven by people dissatisfied with insurers declining their claims have meant that complaint levels have remained higher than pre-pandemic levels.
The Financial Ombudsman said it is seeing rising trends related to policyholders being told medical conditions had not been properly disclosed, people being dissatisfied with the levels of emergency assistance after falling ill abroad, and complaints about delayed or missed flights, as well as lost and stolen luggage.
Abby Thomas, chief executive and chief ombudsman of the free service, which resolves disputes between consumers and financial firms, 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.”
Responding to the figures, Which? Money editor Jenny Ross said: “Travellers should have faith that their insurer will do right by them in the event something should go wrong with their trip, so it’s concerning to see such a significant rise in the number of complaints about travel insurers to the Financial Ombudsman.
“These figures are likely to be a drop in the ocean, given that many people won’t escalate their complaints to the Ombudsman.”
She called on the Financial Conduct Authority to do more to hold insurance firms to account, “and should be ready to take tough action against those that are persistently falling short”.