InsurTech Blink Parametric protected over 60,000 Canadian and US travellers over the holiday period, which saw severe travel disruption as a result of weather conditions.
According to Blink, the harsh weather conditions in the US saw more than 11,000 flight cancellations in 1 week, and over 30,000 delays.
This has led to thousands of traveller claims, and huge claims processing costs for travel insurers.
In a climate of increasing costs of claim processing, Blink said that many travel insurers across North America will be hit hard on the back of recent storms in this peak travel period. This is very likely to have widespread implications for the travel insurance industry all over the world, and in turn for policy holders, or would-be policy holders, the company said.
This is a major turning point for the travel insurance industry, and according to Blink, is the “ultimate proof point” that a major shift in how travel and luggage delay claims are paid is now critically important for the long-term future of the sector.
Blink Parametric works with travel insurers across the globe to improve customer experience and manage costs and claims in real-time, where there is a clear pay-out requirement, such as a flight cancellation or delay.
Blink Parametric’s experience from working with global insurance partners, is that insurers want to pay claims in a timely manner, but many are hampered by the operational and staffing costs of managing the claims process manually, especially at peak times in, what is still, a very traditional industry.
Carl Carter, chief commercial officer, said,“We are seeing continued and increased demand from travel insurers worldwide that are looking to modernise and improve their customer claims experience on high volume, low value claims while mitigating claims handling costs.
“These recent winter storms in the US and Canada have really shown the benefit of parametric claims handling to both traveller and travel insurer, as we have been able to deliver lounge passes and claims payments in real-time, exactly when the traveller needed it. Our partner travel insurers have also benefited by the ability of our parametric systems to automatically handle claims at scale, especially at peak times of surge like this.”
Last month, Blink partnered with Sanctifly, a travel wellness subscription platform, to drive real-time flight delay benefits.
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