10Life Test: Airline Add-On Travel Insurance Priced by Airfare — Same Coverage, Premiums Differ by up to 34%
Key findings: 10Life found that premiums for the same airline embedded travel insurance plan ranged from HK$859 to HK$1,153 for the same route and trip duration, a 34% difference. Every HK$1,000 increase in airfare was associated with an increase of around HK$22 in the add-on premium, while similar coverage via an insurance comparison platform cost around HK$262, about one-quarter of the…
A recent analysis by 10Life's Research and Data Analytics team has revealed that the cost of airline embedded travel insurance can vary significantly compared to other purchase channels, even when the coverage remains the same. The study compared six scenarios of a 14-day Hong Kong to New York trip, using the same travel insurance plan, coverage level, and benefit limits.
The premiums for these scenarios ranged from HK$859 to HK$1,153, a difference of up to 34%. The researchers found that for every HK$1,000 increase in airfare, the add-on travel insurance premium rose by around HK$22. This suggests that the premiums are more closely linked to the price of the flight rather than the risk factors typically associated with travel insurance, such as trip duration, destination, and traveller age.
In contrast, other purchase channels, including travel insurance products offering similar coverage, did not show such drastic price fluctuations. The premiums for these products were generally calculated based on trip details, and did not vary according to airfare. This finding highlights the potential for consumers to pay significantly more for travel insurance when booking through airlines, without necessarily receiving better coverage or additional benefits.
Written by urgent.news from Arabian Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
