New 'pay-per-day' travel insurance service can be customised on users' phones

A digital banking service is to offer "pay-per-day" travel insurance, using app technology to pinpoint customers' locations and allowing people to customise the cover they need from their phones.

App-based service Revolut said its new travel insurance product will provide instant medical and dental cover, starting at less than £1 per day.

Revolut, which launched two years ago, said customers will be able to activate travel insurance at the tap of a button.

People need to be a customer of the Revolut app to take out the travel insurance, which covers overseas emergency medical and dental assistance and expenses.

Revolut said users will be able to customise their insurance needs from their phone while on the move, with the option of adding winter sports cover as well as including friends and family on their policy.

Policyholders can make adjustments to their coverage, such as adding winter sports cover, after they have landed for their holiday.

The insurance policies will be underwritten in partnership with Thomas Cook Money. Policies will be issued under the White Horse Insurance brand.