Parametric Flight Delay Insurance with Hong Kong Express Airline Qorus-NTT DATA Innovation in Insurance Awards 2025
Hong KongCategory
Product & Service InnovationKeyword
Customer experience, Data, Travel Insurance, Parametric InsuranceBusiness Line
AssistanceDistribution Channel
Partners
Innovation presentation
Our project, launched in November 2024, introduced Hong Kong’s first Parametric Flight Delay Insurance, co-developed with HK Express Airlines. The product offers automatic compensation or lounge access in the event of flight delays, using real-time flight data to trigger compensation. The main objective is to enhance the customer experience by providing an instant and hassle-free solution, eliminating the traditional claims process, and strengthening loyalty through integration with HK Express’s U-First loyalty program.
The reason behind this initiative was to address customer frustration with traditional delay insurance claims, offering a more transparent, efficient, and immediate alternative. This product is the first of its kind in the Hong Kong market, specifically targeting the low-cost airline sector. Currently, there is limited competition offering parametric flight delay insurance, making this an innovative solution with significant market potential.
Our inspiration came from global trends in digitalization and successful parametric insurance models that simplify claims processes, such as those already deployed in other markets. We also drew on feedback from sister entities within the AXA group that have launched similar initiatives.
The project was developed through a cross-functional collaboration involving Product Development, Underwriting, Commercial, IT, Marketing, Legal & Compliance, and Customer Experience teams. The work on contractual negotiations, user experience design, legal aspects and pricing models took approximately six months. The early results have been promising, with positive customer feedback on its simplicity and efficiency. We are closely monitoring performance and adoption, and HK Express is benefiting from this innovative offering, which helps differentiate it in a competitive market.
https://www.axapartners.com/en/page/axa-hk-express-flight-delay-parametric-protection
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