Co-op Insurance has launched into the travel insurance market, targeting customers who are unable to pay large costs up front when they make a claim. The Co-op says it is moving to fill a gap in the market for people who wish to be insured but are wary of the high costs they would be required to pay if they ever claim. The insurer says the average travel insurance claim now stands at £2,090, with many insurers requiring customers to pay any costs up front and claim this cash back later. Research by Co-op Insurance found that almost two-thirds (62%) of customers have been required to pay costs up front and then claim the costs back from their insurer later. One in 10 claimants say they have ended up in debt because they have had to shell out to fund the cost of their treatment. The Co-op’s range offers unlimited “cashless” medical expenses for policy holders of all ages - where fees are paid immediately to the hospital, rather than by the claimant - plus video consultation with a UK-based doctor. Its policies also have no upper age limit, although if you’re over 90 you will need to phone Co-op to discuss the insurance before taking it out. Mark Summerfield, chief executive of Co-op Insurance, says the firm is targeting a poorly-served segment of the market. He says: “This is an exciting time for the Co-op as we introduce travel insurance to our portfolio of products. Having recognised a gap in the market, we’ve worked with our members across the Co-op, to build a product which is fair, inclusive of all ages and medical conditions. “Furthermore, we’re the first general insurer to pay medical expenses up front, ensuring that our customers are not left out of pocket at what can already be a stressful time.” The Co-op is not the only financial brand expanding into a new sector. Earlier this week M&S Bank entered the mortgage market for the first time, launching a range of products for first-time buyers and beyond. As with all new entrants, extra competition in a sector is always welcome, especially for customers who already use Co-op Insurance for their car, home and pet insurance. The ability for customers to make a claim without shelling out for the cost up front is also a good benefit. However, you should always make sure you search the market for the best deal before choosing a policy. Use a price comparison site to make sure you get the best deal. Sites such as Compare the Market and MoneySuperMarket allow you to check prices across the market, while others including All Clear Travel and Medical Travel Compared specialise in finding the best deals if you have a pre-existing medical condition. Make sure you’re clear exactly what your policy covers to ensure you’re not left unable to claim should the worst happen. For example, {research published earlier this month by Defaqto} shows that just 58% of single trip insurance policies and 61% of annual policies cover cruises as standard. https://www.moneywise.co.uk/news/2018-01-08/check-your-cruise-covered-four-10-policies-dont-protect-trips-standard Below is a table of what each of Co-op’s policy tiers cover. The exact price you will be quoted depends on a range of factors including age, health, how long you’re looking to be insured for and where in the world you are travelling. Source: Co-op Insurance, 27 January 2018
Co - Op Insurance has begun offering travel insurance , offering instant payment of medical expenses to avoid customers having to pay up front and claim back later . Research by the company found 62 % of customers have failed to pay costs in advance when making a claim , with 10 % saying they have ended up in debt as a result . To make claims easier , Co - Op 's service will cover unlimited " cashless " medical expenses , with fees being paid direct to medical providers rather than to the claimant . The service will be backed up by online video consultations with UK - based doctors .