Medical under-declaration poses systemic threat to travel insurance claims, Verisk warns
New research suggests confusion and poor disclosure processes, rather than fraud, are driving rising claims friction across travel, health, and life insurance
Medical under-declaration has become a growing concern for insurers, with new research suggesting that confusion and process design flaws are contributing more to disclosure failures than intentional non-disclosure.
A report from data analytics and risk assessment specialist Verisk found that 87% of travel insurers viewed medical under-declaration as a challenge for their business, while more than half believe the issue is worsening.
Four in five respondents said the problem had increased since the Covid-19 pandemic, reflecting the growing complexity of medical histories and the rising prevalence of chronic conditions among travellers.
Jeff Cook, Head of Life and Health at Verisk, warned that the industry was still struggling to quantify the scale of the issue. “This is just the tip of the iceberg,” he said. “The reality is, the industry doesn’t fully understand how big the iceberg of medical under-declaration really is. Such statistics can only reinforce that it is alarmingly common.”
The findings form part of Verisk’s latest report, Medical Under-Declaration: A Systemic Risk to Insurance Outcomes, which argues that inaccurate medical disclosures have become a structural issue affecting underwriting, pricing, claims handling, and customer outcomes across life, health, and travel insurance.
Confusion, not fraud, driving disclosure gaps
For the travel sector, the implications can be particularly significant. Undeclared conditions often only come to light when a claim is submitted, potentially leading to delays, disputes, or reduced settlements at a time when policyholders may be facing a medical emergency abroad.
However, the report challenges the common assumption that non-disclosure is primarily driven by fraud. Instead, insurers identified customers’ lack of understanding of their own medical conditions as the leading cause of under-declaration, cited by 51% of respondents. Genuine mistakes accounted for 27%, while deliberate omissions were identified by just 18%.
Jack Farrall, Head of Travel and Pet at Verisk, said behavioural factors were becoming increasingly important as health profiles evolved.
“We’re also seeing under-declaration become more challenging because chronic conditions are rising so quickly,” he added. “More customers are living longer with multiple managed illnesses, and those conditions feel ‘routine’ to them – which makes them less likely to declare.”
The findings suggest that many travellers remain uncertain about what constitutes a pre-existing condition, particularly where illnesses are well controlled, historic, or perceived as insignificant.
Weak points in the disclosure chain
That uncertainty is feeding through into the wider insurance value chain. Verisk found that 30% of travel insurers had seen increases in cancellation and emergency medical claims where non-disclosure was identified during the claims assessment process. Nearly half said partial disclosures created as many difficulties as complete omissions.
The report also highlights several operational blind spots that may be limiting insurers’ understanding of the issue.
More than 60% of insurers surveyed said they did not record who completed a medical declaration, whether it was the traveller, a family member, or another third party. Verisk suggested this might make it harder to identify where misunderstandings originated and whether proxy declarations contributed to disclosure errors.
Meanwhile, 42% of respondents said customers renewing policies could carry forward medical information from previous years, raising concerns that changes in health status may not always be captured accurately.
Verisk argued that traditional yes/no medical questions might be part of the problem, as customers interpreted them inconsistently, particularly where medical terminology was unfamiliar or perceived as irrelevant.
The company is therefore calling for greater use of clearer language, more structured questioning, and behavioural design principles that better reflect how customers process health information.
Dr Jochem Caris, Medical Director at Verisk, added: “Industry jargon alienates customers. People don’t think in medical classifications – they think in everyday terms. Plain language turns a confusing process into one people can actually navigate.”
The company also pointed to a broader commercial incentive for insurers to improve disclosure quality. In an increasingly competitive market where claims payment statistics are often publicly reported, disputes arising from undeclared medical conditions can carry reputational consequences as well as financial costs.