Staysure, a travel insurance provider, is being investigated after increasing the cost of amending policies prompted 200 complaints. The company currently sells annual policies starting at just £75. To address this, they have taken their own initiative to implement a £15 cap for some phone calls, including those used to update medical declarations.
This became startlingly clear during a recent case in which Staysure’s customers exasperations were laid bare. This particular customer had to amend their policy after having a biopsy. On doing so, the customer faced a £15 cost just to call to report the medical results. This charge compounded the original £15 charged after the first call. As a result, the customer was forced to use £30 worth of two phone calls just to change their address on their insurance policy.
Staysure recently notified policyholders that any amendments to existing policies would need to be processed through the company’s new digital web portal. For those who do not have access to or choice to use online communication, these flat fees are a major financial burden. The customer told regulators that these new charges are an unauthorized impediment to doing business in today’s insurance market.
This rule, finalized in 2014, outlawed these practices to safeguard consumers against deceptive fees. Critics argue that Staysure’s flat fees may circumvent these regulations, impeding customers’ ability to make necessary amendments without incurring additional costs.
In response to the growing discontent, a spokesperson for Staysure stated, “We are sorry our customer feels that admin fees are unjust when making policy changes over the phone, but we do review them on a case-by-case basis where necessary. We regularly review our processes to ensure they remain fair for everyone and in line with industry best practice.”
The UK’s Financial Conduct Authority (FCA) recently weighed in on the issue, making the case that consumer trust in insurers needs to be maintained. They stated, “It’s crucial people can trust their insurer to support them to manage their policies, and they shouldn’t face unreasonable barriers or costs when doing so.”
Staysure’s customer example highlights a growing issue faced by many policyholders. Second, they are concerned about the transparency and the fairness of the fees related to insurance products. Consumers are learning more about their rights with each passing day. This increased scrutiny will cause even more pressure on insurers to explain their price-setting practices.