Property & Casualty (P&C) insurer Chubb has partnered with Swiss Re to launch Flight Delay – an insurance solution for air travellers in Australia that enables payouts on delays as short as 30 minutes.
The product is available via Chubb’s Connect app and is powered by Australia-based payments platform provider United Networks.
Flight Delay provides fixed compensation for the inconvenience travellers may face when their flight is cancelled, diverted or delayed; traditionally a payout is only possible when the delay is more than six hours and for a specified loss, such as extra accommodation.
There are three policy options ranging from 30, 45 and 60 minutes- with any one of these triggering a payout of $100; flight cancellations and diversions automatically trigger a similar payout.
The payout is usually processed within an hour, but at the latest, within 72 hours of arriving at the destination airport.
Swiss Re validates the incidents in real-time using data from FlightStats, a provider of real-time global flight data to consumers and the travel industry.
Once Swiss Re has confirmed the incident, United Networks will pay the amount directly into the customer’s PayPal account without the customer having to obtain any reports from the airline to file a claim.
“Flight delays continue to be the top incident disrupting travel plans for today’s travelers,” commented Donna Dorairajoo, Chubb Asia Pacific’s Head of Travel Insurance.
“With more air travel, Chubb recognises their need for tailored insurance protection and efficient service. Flight delay insurance is timely in meeting the demand for relevant and affordable insurance.”
Nicholas Ghattas, Chief Executive Officer of United Networks said, “We are excited to be able to work with Chubb and Swiss Re to innovate and drive the insurance digital revolution.
“Our leading global connectivity, engagement and payments platform will streamline uptake, sale, on-boarding and the automated claims process.
Swiss Re’s Head of Parametric & Emerging Solutions, Gianni Biason, added, “Our flight delay solution brings much-needed transparency and simplicity to consumers.
“Swiss Re’s unique dynamic pricing and end-to-end solution helps insurers and aviation partners speed up their time-to-market and steer their businesses real-time.”