Parametric flight delay cover is a type of insurance coverage that has been launched to address flight delays. This innovative insurance product, typically offered in partnership with insurtech companies, utilizes real-time monitoring of flight data to provide immediate compensation or benefits to policyholders in the event of a flight delay meeting specific predefined conditions.
With parametric flight delay cover, travelers can register their flight details prior to departure, allowing the insurance provider to monitor the flights in real-time. If a flight delay occurs that meets the predetermined criteria, such as a specified duration (e.g., two hours or more), policyholders are automatically notified and receive compensation or benefits.
The compensation or benefits provided through parametric flight delay cover can vary. For example, policyholders may receive direct financial compensation deposited into their bank accounts, or they may be granted access to airport lounges, meal vouchers, or transportation services during the delay.
This type of insurance coverage aims to streamline the claims process and provide faster, more efficient compensation to travelers. By eliminating the need for extensive paperwork or claims verification, parametric flight delay cover offers a simplified and consumer-focused solution for managing travel disruptions.
Getcover.com, a UK-based company, is integrating parametric flight delay coverage into insurance policies. This offering provides travelers with airport lounge access or a £30 ($56) payout in the event of a flight delay lasting two hours or more.
The payout is conveniently deposited directly into the policyholder’s bank account, eliminating the need for “receipts, forms, or phone calls.”
Through a collaboration with insurtech Blink Parametric, Getcover.com policyholders can register their flight details before their journey, allowing Blink to monitor the flights in real-time. In the event of a flight delay, travelers are promptly notified.
Karen Beales, Managing Director at Financial and Legal Insurance Company, the underwriter of the product, expressed enthusiasm for consumer-centric parametric travel insurance offerings.
With the anticipated resurgence of travel to pre-pandemic levels, supporting innovative parametric-powered solutions that provide travelers with valuable protection in case of disruptions is a priority.
London-based Newpoint Insurance Brokers, operating under the name Getcover.com, announces that the real-time flight delay service will be seamlessly integrated into all Gold tier policies purchased directly from their website, with no additional cost to the policyholder.
Blink Parametric, renowned for its expertise in handling frequent, low-value claims in the travel industry, is the provider of this service.
Source : insurancenews.com.au