FOS issues travel insurance warning as complaints rise ahead of holiday season

The UK Financial Ombudsman Service is reminding holidaymakers to review travel insurance ahead of the spring bank holiday, citing ongoing complaint levels.

The service received 3,200 travel insurance complaints between 1 April and 31 December 2025. The most common issues were declined claims, delays in settling claims, and disputes over payouts.

It warned that British travellers considering UK breaks should not assume insurance is unnecessary, as domestic trips can still involve financial exposure. It stressed the importance of understanding policy terms and disclosing all requested information during application, as non-disclosure can affect later claims.

Andy Wright, Ombudsman Director at the Financial Ombudsman Service, said travellers should understand what they are buying and that full disclosure helps prevent issues if something goes wrong. He added that customers unhappy with insurer decisions should first complain to the firm before escalating to the Ombudsman if needed.

Typical cover can include cancelled accommodation, transport disruption, personal belongings, activity-related risks, and unusable accommodation prior to travel. However, cover varies significantly and may overlap with benefits from bank accounts, credit cards or home insurance.

The service also cautioned that overseas policies differ, particularly around cancellations and missed connections, and advised consumers to check terms carefully ahead of travel plans overall.

The UK government recently announced that the FOS would be reformed to improve efficiency of service.